NASDAQ$ZM

Zoom Video Communications Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Zoom's Q3 2022 financial results were released, showing revenue growth and strong customer acquisition.

Zoom Video Communications announced its Q3 fiscal year 2022 results, with total revenue reaching $1,050.8 million, a 35% increase year-over-year. The company reported a GAAP operating margin of 27.7% and a non-GAAP operating margin of 39.1%. Zoom is projecting full fiscal year revenue between $4.079 billion and $4.081 billion.

  • Total revenue for Q3 reached $1,050.8 million, up 35% year-over-year.
  • GAAP income from operations was $290.9 million, increasing from $192.2 million in Q3 2021.
  • GAAP net income attributable to common stockholders was $340.3 million, or $1.11 per share.
  • Zoom had 2,507 customers contributing more than $100,000 in TTM revenue, a 94% increase year-over-year.

Headline financials

Total Revenue

$1.05B

Previous: $777M+35.2%
EPS (adj)

$1.11

Previous: $0.99+12.1%
Customers >$100k TTM

2.5K

Previous: 1.3K+94.5%
Net Dollar Expansion Rate

130.0%

No prior period
Capital Expenditures

-$112M

Previous: -$58.5M-91.1%
Free Cash Flow

$229M

Previous: $140M+63.1%
Net Income

$340M

Previous: $199M+71.4%
Operating Income

$291M

Previous: $192M+51.3%
Gross Profit

$780M

Previous: $518M+50.4%
Cash & Equivalents

$1.32B

Previous: $731M+81.0%
Total Assets

$6.98B

Previous: $3.05B+128.8%
Stock-Based Comp

$115M

Previous: $93.9M+22.2%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.05B

Q3 2022+35.2%vs Q3 2021
Beat estimate in 13 of 14 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 Q4 2022 and full fiscal year 2022. They expect Q4 revenue between $1.051 billion and $1.053 billion. Full year revenue is projected between $4.079 billion and $4.081 billion.

Tailwinds

  • Total revenue is expected to be between $1.051 billion and $1.053 billion for Q4 2022
  • Non-GAAP income from operations is expected to be between $361.0 million and $363.0 million for Q4 2022
  • Non-GAAP diluted EPS is expected to be between $1.06 and $1.07 for Q4 2022
  • Total revenue is expected to be between $4.079 billion and $4.081 billion for full fiscal year 2022
  • Non-GAAP income from operations is expected to be between $1.598 billion and $1.600 billion for full fiscal year 2022

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis
  • Uncertainty of expenses that may be incurred in the future
  • These factors could be material to Zoom's results computed in accordance with GAAP
  • Potential effect on our user growth rate once the impact of the COVID-19 pandemic tapers
  • Users return to work or school or are otherwise no longer subject to limitations on in-person meetings

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 Q3 2022

Historical avgQ3 2022

+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

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