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Oct 31, 2021

Zoom Q3 2022 Earnings Report

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

Key Takeaways

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.

Total Revenue
$1.05B
Previous year: $777M
+35.2%
EPS
$1.11
Previous year: $0.99
+12.1%
Customers > $100k TTM Revenue
2.51K
Previous year: 1.29K
+94.5%
Net Dollar Expansion Rate
130%
Gross Profit
$780M
Previous year: $518M
+50.4%
Cash and Equivalents
$1.32B
Previous year: $731M
+81.0%
Free Cash Flow
$375M
Previous year: $388M
-3.5%
Total Assets
$6.98B
Previous year: $3.05B
+128.8%

Zoom

Zoom

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.

Positive Outlook

  • 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

Challenges Ahead

  • 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