NASDAQ$ZM

Zoom Video Communications Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Zoom's Q1 2023 financial results were released, demonstrating revenue growth and profitability.

Zoom Video Communications announced its financial results for the first quarter of fiscal year 2023, with total revenue of $1,073.8 million, up 12% year over year. The company reported a GAAP operating margin of 17.4% and a non-GAAP operating margin of 37.2%. Net cash provided by operating activities was $526.2 million, representing a 49.0% margin.

  • Total revenue for the first quarter reached $1,073.8 million, a 12% increase year over year.
  • GAAP operating margin was 17.4%, while non-GAAP operating margin was 37.2%.
  • Net cash provided by operating activities amounted to $526.2 million, a 49.0% margin.
  • The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 46% year over year.

Headline financials

Total Revenue

$1.07B

Previous: $956M+12.3%
EPS (adj)

$1.03

Previous: $1.32-22.0%
Customers >$100k TTM

2.9K

Previous: 2.0K+45.9%
Net Dollar Expansion Rate

123.0%

Previous: 130.0%-5.4%
Capital Expenditures

-$25M

Previous: -$79.1M+68.3%
Free Cash Flow

$88.6M

Previous: $148M-40.3%
Net Income

$114M

Previous: $228M-50.0%
Operating Income

$187M

Previous: $226M-17.3%
Gross Profit

$812M

Previous: $691M+17.5%
Cash & Equivalents

$1.41B

Previous: $1.56B-9.6%
Total Assets

$7.96B

Previous: $5.89B+35.1%
Stock-Based Comp

$209M

Previous: $99M+111.5%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.07B

Q1 2023+12.3%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Zoom · $1.24B total across 2 segments · Q1 2027

  • Enterprise
    $756M
  • Online
    $483M

Forward guidance

Zoom provided guidance for the second quarter and full fiscal year 2023.

Tailwinds

  • Second quarter revenue is expected to be between $1.115 billion and $1.120 billion.
  • Second quarter non-GAAP income from operations is expected to be between $360.0 million and $365.0 million.
  • Second quarter non-GAAP diluted EPS is expected to be between $0.90 and $0.92.
  • Full fiscal year revenue is expected to be between $4.530 billion and $4.550 billion.
  • Full fiscal year non-GAAP income from operations is expected to be between $1.480 billion and $1.500 billion.

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
  • The unavailability is due to the uncertainty of expenses that may be incurred in the future.
  • These factors could be material to Zoom's results computed in accordance with GAAP.
  • The guidance is subject to numerous uncertainties and risks, including factors beyond Zoom's control.
  • These risks could cause actual results, performance or achievement to differ materially and adversely from those anticipated.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.5%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.6%

Avg return

30 days after

42%

13 / 31 earnings

Positive

+52.9%

Q2 2021

Best reaction

-18.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-11.6%-14.0%-9.0%
Q3 2026+9.8%+8.1%+11.7%
Q2 2026+12.7%+10.6%+15.0%
Q1 2026-0.1%-4.1%-5.2%
Q4 2025-8.5%-9.1%-5.3%
Q3 2025-2.9%-3.7%-0.2%
Q2 2025+15.1%+20.6%+14.2%
Q1 2025-0.5%-1.8%-12.4%
Q4 2024+7.5%+11.8%+5.1%
Q3 2024+2.8%+0.6%+9.0%
Q2 2024-0.7%+2.1%+3.8%
Q1 2024-5.4%-4.5%-3.5%
Q4 2023+0.9%-4.2%-4.5%
Q3 2023-5.5%-7.6%-14.3%
Q2 2023-18.3%-18.2%-23.7%
Q1 2023+5.1%+23.0%+28.3%
Q4 2022-2.0%-13.1%-2.3%
Q3 2022-17.8%-12.4%-23.1%
Q2 2022-15.1%-12.5%-24.5%
Q1 2022-1.3%+1.3%+16.6%
Q4 2021-0.2%-9.7%-14.0%
Q3 2021-13.8%-13.1%-25.1%
Q2 2021+52.9%+23.6%+57.1%
Q1 2021+9.7%+1.7%+28.2%
Q4 2018+28.9%+11.6%+21.2%
Q4 2020+6.4%-3.2%+9.1%
Q3 2020-10.3%-7.7%-3.8%
Q2 2018-1.1%+3.7%-12.5%
Q2 2020-8.7%-14.1%-18.2%
Q1 2018+28.4%+29.4%+15.7%
Q1 2020+20.5%+21.6%+17.7%
Q4 2019
Q3 2018

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