NASDAQ$ZM

Zoom Video Communications Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Zoom's Q1 2025 financial results were released, demonstrating growth in revenue and operating cash flow.

Zoom reported a 3.2% year-over-year increase in total revenue, reaching $1,141.2 million for the first quarter of fiscal year 2025. The company's operating cash flow saw a significant increase of 40.6% year-over-year, and free cash flow grew by 43.6%.

  • Total revenue for Q1 2025 reached $1,141.2 million, a 3.2% increase year-over-year.
  • Enterprise revenue grew by 5.3% year-over-year, totaling $665.7 million.
  • GAAP operating margin was 17.8%, and non-GAAP operating margin was 40.0%.
  • Operating cash flow increased by 40.6% year-over-year, reaching $588.2 million.

Headline financials

Total Revenue

$1.14B

Previous: $1.11B+3.2%
EPS

$0.69

Previous: $1.16-40.5%
Customers >$100k TTM

3.9K

Previous: 3.6K+8.4%
Online Monthly Churn

3.2%

No prior period
Online 16mo+ MRR %

73.8%

No prior period
Capital Expenditures

-$18.5M

Previous: -$21.8M+15.2%
Free Cash Flow

$198M

Previous: -$6.38M+3199.3%
Net Income

$216M

Previous: $15.4M+1300.6%
Operating Income

$203M

Previous: $9.74M+1984.0%
Gross Profit

$868M

Previous: $841M+3.2%
R&D Expense

$206M

No prior period
Stock-Based Comp

$229M

Previous: $282M-18.7%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.14B

Q1 2025+3.2%vs Q1 2024
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 provided guidance for the second quarter of fiscal year 2025 and full fiscal year 2025.

Tailwinds

  • Second Quarter Fiscal Year 2025: Total revenue is expected to be between $1.145 billion and $1.150 billion and revenue in constant currency is expected to be between $1.147 billion and $1.152 billion.
  • Second Quarter Fiscal Year 2025: Non-GAAP income from operations is expected to be between $415.0 million and $420.0 million.
  • Second Quarter Fiscal Year 2025: Non-GAAP diluted EPS is expected to be between $1.20 and $1.21 with approximately 316 million weighted average shares outstanding.
  • Full Fiscal Year 2025: Total revenue is expected to be between $4.610 billion and $4.620 billion and revenue in constant currency is expected to be between $4.616 billion and $4.626 billion.
  • Full Fiscal Year 2025: Full fiscal year non-GAAP income from operations is expected to be between $1.740 billion and $1.750 billion.

Headwinds

  • Second Quarter Fiscal Year 2025: Non-GAAP diluted EPS is expected to be between $1.20 and $1.21 with approximately 316 million weighted average shares outstanding.
  • Full Fiscal Year 2025: Full fiscal year non-GAAP diluted EPS is expected to be between $4.99 and $5.02 with approximately 319 million weighted average shares outstanding.
  • The EPS and share count figures do not include the impact from $1.350 billion of authorized share repurchase remaining as of April 30, 2024.
  • 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.

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 2025

Historical avgQ1 2025

+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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