NASDAQ$ZM

Zoom Video Communications Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Zoom's Q2 2023 financial results were reported, showing revenue growth and continued momentum with Enterprise customers.

Zoom Video Communications announced its Q2 2023 financial results, with total revenue reaching $1,099.5 million, an 8% increase year-over-year. The company's GAAP operating margin was 11.1%, while the non-GAAP operating margin was 35.8%. Zoom is expecting to deliver FY23 revenue in the range of $4.385 billion to $4.395 billion.

  • Total revenue for the second quarter was $1,099.5 million, up 8% year over year.
  • GAAP income from operations for the second quarter was $121.7 million.
  • GAAP net income attributable to common stockholders for the second quarter was $45.7 million, or $0.15 per share.
  • Zoom had approximately 204,100 Enterprise customers, up 18% from the same quarter last fiscal year.

Headline financials

Total Revenue

$1.1B

Previous: $1.02B+7.6%
EPS (adj)

$1.05

Previous: $1.36-22.8%
Customers >$100k TTM

3.1K

Previous: 2.3K+36.8%
Net Dollar Expansion Rate

120.0%

No prior period
Capital Expenditures

-$52.9M

Previous: -$92M+42.6%
Free Cash Flow

-$7.12M

Previous: $225M-103.2%
Net Income

$45.8M

Previous: $317M-85.6%
Operating Income

$122M

Previous: $295M-58.7%
Gross Profit

$826M

Previous: $760M+8.6%
Cash & Equivalents

$937M

Previous: $1.93B-51.5%
Total Assets

$8.05B

Previous: $6.51B+23.6%
Stock-Based Comp

$256M

Previous: $102M+150.2%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.1B

Q2 2023+7.6%vs Q2 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 its third quarter and full fiscal year 2023.

Tailwinds

  • Third quarter total revenue is expected to be between $1.095 billion and $1.100 billion.
  • Third quarter non-GAAP income from operations is expected to be between $325.0 million and $330.0 million.
  • Third quarter 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 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.

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
  • The uncertainty of expenses that may be incurred in the future could be material to Zoom's results computed in accordance with GAAP.
  • Revenue was impacted by the strengthening of the U.S. dollar.
  • Performance of the online business impacted revenue.
  • Sales weighted to the backend of the quarter impacted revenue.

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 Q2 2023

Historical avgQ2 2023

+2.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

44%

14 / 32 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+9.3%+3.4%-10.6%
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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro