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Oct 31, 2023

Zoom Q3 2024 Earnings Report

Zoom's Q3 2024 financial results were announced, demonstrating revenue growth and increased profitability.

Key Takeaways

Zoom Video Communications reported a 3.2% year-over-year increase in total revenue for Q3 2024, reaching $1,136.7 million. The company's GAAP operating margin was 14.9%, and non-GAAP operating margin reached 39.3%. Zoom raised its full-year outlook for revenue, non-GAAP profitability, and free cash flow.

Total revenue increased by 3.2% year-over-year to $1,136.7 million.

Enterprise revenue grew by 7.5% year-over-year to $660.6 million.

GAAP operating margin was 14.9%, while non-GAAP operating margin was 39.3%.

Free cash flow was $453.2 million, up 66.2% year-over-year.

Total Revenue
$1.14B
Previous year: $1.1B
+3.2%
EPS
$1.29
Previous year: $1.07
+20.6%
Customers > $100k TTM Revenue
3.73K
Previous year: 3.29K
+13.5%
Net Dollar Expansion Rate
105%
Previous year: 117%
-10.3%
Gross Profit
$866M
Previous year: $831M
+4.2%
Cash and Equivalents
$1.49B
Previous year: $1.1B
+36.2%
Free Cash Flow
$453M
Previous year: $273M
+66.3%
Total Assets
$9.32B
Previous year: $7.84B
+18.9%

Zoom

Zoom

Forward Guidance

Zoom provided guidance for the fourth quarter of fiscal year 2024, expecting total revenue between $1.125 billion and $1.130 billion, and non-GAAP diluted EPS between $1.13 and $1.15. Full fiscal year 2024 total revenue is expected to be between $4.506 billion and $4.511 billion, with non-GAAP diluted EPS between $4.93 and $4.95.

Positive Outlook

  • Total revenue is expected to be between $1.125 billion and $1.130 billion.
  • Revenue in constant currency is expected to be between $1.129 billion and $1.134 billion.
  • Non-GAAP income from operations is expected to be between $409.0 million and $414.0 million.
  • Non-GAAP diluted EPS is expected to be between $1.13 and $1.15.
  • Approximately 312 million weighted average shares outstanding are expected.