NASDAQ$ZM

Zoom Video Communications Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Zoom reported strong Q4 and FY2022 results, with revenue growth and increased profitability.

Zoom Video Communications announced its Q4 and FY2022 financial results. The company's Q4 revenue reached $1,071.4 million, a 21% increase year-over-year. GAAP net income attributable to common stockholders for the quarter was $490.5 million, or $1.60 per share. The company also authorized a stock repurchase program of up to $1.0 billion of Zoom’s Class A common stock.

  • Q4 revenue reached $1,071.4 million, up 21% year-over-year.
  • GAAP income from operations for Q4 was $251.8 million, a slight decrease from $256.1 million in Q4 2021.
  • GAAP net income attributable to common stockholders for Q4 was $490.5 million, or $1.60 per share.
  • Zoom authorized a stock repurchase program of up to $1.0 billion of its Class A common stock.

Headline financials

Total Revenue

$1.07B

Previous: $882M+21.4%
EPS (adj)

$1.29

Previous: $1.22+5.7%
Customers >$100k TTM

2.7K

Previous: 1.6K+65.8%
Net Dollar Expansion Rate

129.0%

Previous: 130.0%-0.8%
Capital Expenditures

$20.8M

Previous: $21.5M-3.2%
Free Cash Flow

$189M

Previous: $378M-50.1%
Net Income

$491M

Previous: $261M+88.3%
Operating Income

$252M

Previous: $256M-1.7%
Gross Profit

$814M

Previous: $615M+32.3%
Cash & Equivalents

$1.06B

Previous: $2.24B-52.6%
Total Assets

$7.55B

Previous: $5.3B+42.5%
Stock-Based Comp

$161M

Previous: $96.3M+67.6%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.07B

Q4 2022+21.4%vs Q4 2021
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 first quarter of fiscal year 2023 and its full fiscal year 2023. Total revenue is expected to be between $1.070 billion and $1.075 billion and non-GAAP income from operations is expected to be between $345.0 million and $350.0 million for Q1 2023. Total revenue is expected to be between $4.530 billion and $4.550 billion and non-GAAP income from operations is expected to be between $1.430 billion and $1.450 billion for FY 2023.

Tailwinds

  • Total revenue is expected to be between $1.070 billion and $1.075 billion for Q1 2023
  • Non-GAAP income from operations is expected to be between $345.0 million and $350.0 million for Q1 2023
  • First quarter non-GAAP diluted EPS is expected to be between $0.86 and $0.88
  • Total revenue is expected to be between $4.530 billion and $4.550 billion for FY 2023
  • Non-GAAP income from operations is expected to be between $1.430 billion and $1.450 billion for FY 2023

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 Q4 2022

Historical avgQ4 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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