NASDAQ$ZM

Zoom Video Communications Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Zoom's Q4 2024 financial results were reported, showing revenue growth and increased profitability.

Zoom Video Communications announced its Q4 and FY24 financial results, with Q4 revenue up 2.6% year-over-year to $1,146.5 million and GAAP net income of $298.8 million, or $0.95 per share. The company's full-year revenue reached $4,527.2 million, a 3.1% increase year-over-year. Zoom is focused on platform innovation, including AI integration, and has authorized a $1.5 billion stock repurchase program.

  • Q4 total revenue reached $1,146.5 million, a 2.6% increase year-over-year.
  • Enterprise revenue for Q4 was $667.3 million, up 4.9% year-over-year.
  • GAAP net income for Q4 was $298.8 million, or $0.95 per share, compared to a loss of $(104.1) million in Q4 2023.
  • Operating cash flow for Q4 increased by 66.0% year-over-year to $351.2 million.

Headline financials

Total Revenue

$1.15B

Previous: $1.12B+2.5%
EPS (adj)

$1.42

Previous: $1.22+16.4%
Customers >$100k TTM

3.8K

Previous: 3.5K+9.8%
Net Dollar Expansion Rate

101.0%

Previous: 115.0%-12.2%
Capital Expenditures

-$18.5M

Previous: $28.3M-165.6%
Net Income

$299M

Previous: -$104M+387.2%
Operating Income

$169M

Previous: -$130M+229.8%
Gross Profit

$870M

Previous: $823M+5.7%
R&D Expense

$205M

No prior period
Stock-Based Comp

$254M

Previous: $518M-50.9%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.15B

Q4 2024+2.5%vs Q4 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 provided guidance for Q1 and full fiscal year 2025, expecting total revenue of approximately $1.125 billion for Q1 and $4.600 billion for the full year. Non-GAAP diluted EPS is expected to be between $1.18 and $1.20 for Q1 and between $4.85 and $4.88 for the full year.

Tailwinds

  • Total revenue is expected to be approximately $1.125 billion for Q1 2025
  • Revenue in constant currency is expected to be approximately $1.125 billion for Q1 2025
  • Non-GAAP income from operations is expected to be between $410.0 million and $415.0 million for Q1 2025
  • Non-GAAP diluted EPS is expected to be between $1.18 and $1.20 for Q1 2025
  • Total revenue is expected to be approximately $4.600 billion for FY 2025

Headwinds

  • Factors could be material to Zoom's results computed in accordance with GAAP.
  • Guidance does not include impact from share repurchase authorization.
  • Uncertainty of expenses that may be incurred in the future.
  • Macroeconomic conditions including inflation and market volatility.
  • Global security concerns and their potential impact on regional and global economies and supply chains.

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 2024

Historical avgQ4 2024

+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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