NASDAQ$ZM

Zoom Video Communications Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a 3% year-over-year increase in total revenue and a 13% increase in Enterprise revenue, driven by strong Enterprise growth and stabilizing Online revenue.

Zoom Video Communications announced its financial results for the first quarter of fiscal year 2024, exceeding guidance due to Enterprise growth and stabilizing Online revenue. The company reported a 3% year-over-year increase in total revenue, with Enterprise revenue up 13%. Zoom raised its outlook for fiscal year 2024 while continuing to invest in innovations such as AI.

  • Total revenue for the first quarter was $1,105.4 million, up 3% year over year.
  • Enterprise revenue was $632.0 million, up 13% year over year.
  • GAAP operating margin was 0.9% and non-GAAP operating margin was 38.2%.
  • The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 23% year over year.

Headline financials

Total Revenue

$1.11B

Previous: $1.07B+2.9%
EPS (adj)

$1.16

Previous: $1.03+12.6%
Customers >$100k TTM

3.6K

Previous: 2.9K+22.8%
Net Dollar Expansion Rate

112.0%

Previous: 123.0%-8.9%
Capital Expenditures

-$21.8M

Previous: -$25M+12.8%
Free Cash Flow

-$6.38M

Previous: $88.6M-107.2%
Net Income

$15.4M

Previous: $114M-86.4%
Operating Income

$9.74M

Previous: $187M-94.8%
Gross Profit

$841M

Previous: $812M+3.6%
Cash & Equivalents

$1.03B

Previous: $1.41B-26.8%
Total Assets

$8.54B

Previous: $7.96B+7.3%
Stock-Based Comp

$282M

Previous: $209M+34.9%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.11B

Q1 2024+2.9%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

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

  • Enterprise
    $756M
  • Online
    $483M

Forward guidance

Zoom is providing the following guidance for its second quarter of fiscal year 2024 and its full fiscal year 2024.

Tailwinds

  • Second Quarter Fiscal Year 2024: Total revenue is expected to be between $1.110 billion and $1.115 billion and revenue in constant currency is expected to be between $1.120 billion and $1.125 billion.
  • Second Quarter Fiscal Year 2024: Non-GAAP income from operations is expected to be between $405.0 million and $410.0 million.
  • Second Quarter Fiscal Year 2024: Non-GAAP diluted EPS is expected to be between $1.04 and $1.06 with approximately 307 million weighted average shares outstanding.
  • Full Fiscal Year 2024: Total revenue is expected to be between $4.465 billion and $4.485 billion and revenue in constant currency is expected to be between $4.495 billion and $4.515 billion.
  • Full fiscal year non-GAAP income from operations is expected to be between $1.630 billion and $1.650 billion.

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort 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.
  • Forward-looking statements are subject to numerous uncertainties and risks, including factors beyond our control.
  • These factors could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements.
  • Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

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 2024

Historical avgQ1 2024

+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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