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Oct 31, 2024
Zoom Q3 2025 Earnings Report
Zoom's Q3 2025 financial performance reflected improved revenue and enterprise growth, alongside a record Zoom Contact Center deal and Workvivo's largest deal with a Fortune 10 company.
Key Takeaways
Zoom Communications reported a 3.6% year-over-year increase in total revenue, reaching $1,177.5 million in the third quarter of fiscal year 2025. Enterprise revenue grew by 5.8% year-over-year, while online monthly average churn reached an all-time low of 2.7%. The company's GAAP net income was $207.1 million, or $0.66 per share, and non-GAAP net income was $435.1 million, or $1.38 per share.
Total revenue for the third quarter reached $1,177.5 million, a 3.6% increase year-over-year.
Enterprise revenue grew by 5.8% year-over-year, reaching $698.9 million.
GAAP net income was $207.1 million, or $0.66 per share, while non-GAAP net income was $435.1 million, or $1.38 per share.
Online monthly average churn hit a record low of 2.7%.
Revenue by Segment
Forward Guidance
Zoom provided guidance for the fourth quarter of fiscal year 2025, expecting total revenue between $1.175 billion and $1.180 billion, and non-GAAP diluted EPS between $1.29 and $1.30. For the full fiscal year 2025, the company anticipates total revenue between $4.656 billion and $4.661 billion, and non-GAAP diluted EPS between $5.41 and $5.43.
Positive Outlook
- Total revenue is expected to be between $1.175 billion and $1.180 billion
- Revenue in constant currency is expected to be between $1.174 billion and $1.179 billion.
- Non-GAAP income from operations is expected to be between $443.0 million and $448.0 million.
- Non-GAAP diluted EPS is expected to be between $1.29 and $1.30
- Approximately 315 million weighted average shares outstanding.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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