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Zoom Video Communications Reports Financial Results for the Second Quarter of Fiscal Year 2023

  • Second quarter total revenue of $1,099.5 million, up 8% year over year

  • Second quarter GAAP operating margin of 11.1% and non-GAAP operating margin of 35.8%

  • Number of customers contributing more than $100,000 in trailing 12 months revenue up 37% year over year


Second Quarter Fiscal Year 2023 Financial Highlights:

  • Revenue: Total revenue for the second quarter was $1,099.5 million, up 8% year over year.

  • Income from Operations and Operating Margin: GAAP income from operations for the second quarter was $121.7 million, compared to GAAP income from operations of $294.6 million in the second quarter of fiscal year 2022. After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from operations for the second quarter was $393.7 million, compared to non-GAAP income from operations of $424.7 million in the second quarter of fiscal year 2022. For the second quarter, GAAP operating margin was 11.1% and non-GAAP operating margin was 35.8%.


Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the second quarter was $45.7 million, or $0.15 per share, compared to GAAP net income attributable to common stockholders of $316.9 million, or $1.04 per share in the second quarter of fiscal year 2022. Non-GAAP net income for the second quarter was $323.5 million, after adjusting for stock-based compensation expense and related payroll taxes, losses (gains) on strategic investments, net, acquisition-related expenses, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.05. In the second quarter of fiscal year 2022, non-GAAP net income was $415.1 million, or $1.36 per share.

  • Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2022 was $5.5 billion.

  • Cash Flow: Net cash provided by operating activities was $257.2 million for the second quarter, compared to $468.0 million in the second quarter of fiscal year 2022. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $222.1 million, compared to $455.0 million in the second quarter of fiscal year 2022.


Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2023, Zoom had:

  • Approximately 204,100 Enterprise customers, up 18% from the same quarter last fiscal year.

  • A trailing 12-month net dollar expansion rate for Enterprise customers of 120%.

  • 3,116 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 37% from the same quarter last fiscal year.



Financial Outlook: Zoom is providing the following guidance for its third quarter fiscal year 2023 and its full fiscal year 2023.

  • Third Quarter Fiscal Year 2023: Total revenue is expected to be between $1.095 billion and $1.100 billion and non-GAAP income from operations is expected to be between $325.0 million and $330.0 million. Non-GAAP diluted EPS is expected to be between $0.82 and $0.83 with approximately 306 million weighted average shares outstanding.

  • Full Fiscal Year 2023: Total revenue is expected to be between $4.385 billion and $4.395 billion. Full fiscal year non-GAAP income from operations is expected to be between $1.440 billion and $1.450 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $3.66 and $3.69 with approximately 307 million weighted average shares outstanding.


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