Zoom Video Communications Inc. (ZM) reports earnings

The report was filed on November 26, 2024

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Zoom Video Communications, Inc. has submitted its 10-Q filing for the quarterly period ended October 31, 2024.

The filing reports revenue of $1,177.5 million for the quarter, reflecting a 3.6% increase from $1,136.7 million in the same quarter the previous year. This growth was driven by a 5.8% increase in revenue from Enterprise customers.

Cost of revenue for the quarter was $283.9 million, representing 24.1% of total revenue, compared to 23.8% in the same quarter of the previous year. The increase in cost ratio is attributed to higher hosting and infrastructure costs.

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The company reported a gross profit of $893.7 million for the quarter, compared to $865.7 million in the previous year.

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Research and development expenses increased to $223.0 million from $196.8 million, primarily due to investments in AI-first innovation.

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Sales and marketing expenses decreased to $361.7 million from $374.4 million, driven by a reduction in marketing spend.

General and administrative expenses were $126.1 million, slightly up from $125.1 million, with an increase in litigation settlements offset by a decrease in personnel-related expenses.

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Net income for the quarter was $207.1 million, up from $141.2 million in the previous year. This increase was supported by higher investment yield and favorable foreign currency exchange rate changes.

Cash provided by operating activities was $1,520.7 million for the nine months ended October 31, 2024, compared to $1,247.6 million in the previous year.

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Zoom continues to focus on enhancing its platform with new features and products, including investments in AI and machine learning technologies.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Zoom Video Communications Inc. quarterly 10-Q report dated November 26, 2024. To report an error, please email earnings@qz.com.