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Apr 30, 2022

Zoom Q1 2023 Earnings Report

Zoom's Q1 2023 financial results were released, demonstrating revenue growth and profitability.

Key Takeaways

Zoom Video Communications announced its financial results for the first quarter of fiscal year 2023, with total revenue of $1,073.8 million, up 12% year over year. The company reported a GAAP operating margin of 17.4% and a non-GAAP operating margin of 37.2%. Net cash provided by operating activities was $526.2 million, representing a 49.0% margin.

Total revenue for the first quarter reached $1,073.8 million, a 12% increase year over year.

GAAP operating margin was 17.4%, while non-GAAP operating margin was 37.2%.

Net cash provided by operating activities amounted to $526.2 million, a 49.0% margin.

The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 46% year over year.

Total Revenue
$1.07B
Previous year: $956M
+12.3%
EPS
$1.03
Previous year: $1.32
-22.0%
Customers > $100k TTM Revenue
2.92K
Previous year: 2K
+45.9%
Net Dollar Expansion Rate
123%
Previous year: 130%
-5.4%
Gross Profit
$812M
Previous year: $691M
+17.5%
Cash and Equivalents
$1.41B
Previous year: $1.56B
-9.6%
Free Cash Flow
$501M
Previous year: $454M
+10.3%
Total Assets
$7.96B
Previous year: $5.89B
+35.1%

Zoom

Zoom

Forward Guidance

Zoom provided guidance for the second quarter and full fiscal year 2023.

Positive Outlook

  • Second quarter revenue is expected to be between $1.115 billion and $1.120 billion.
  • Second quarter non-GAAP income from operations is expected to be between $360.0 million and $365.0 million.
  • Second quarter non-GAAP diluted EPS is expected to be between $0.90 and $0.92.
  • Full fiscal year revenue is expected to be between $4.530 billion and $4.550 billion.
  • Full fiscal year non-GAAP income from operations is expected to be between $1.480 billion and $1.500 billion.

Challenges Ahead

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
  • The unavailability is due to the uncertainty of expenses that may be incurred in the future.
  • These factors could be material to Zoom's results computed in accordance with GAAP.
  • The guidance is subject to numerous uncertainties and risks, including factors beyond Zoom's control.
  • These risks could cause actual results, performance or achievement to differ materially and adversely from those anticipated.