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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%.

Total Revenue
$1.18B
Previous year: $1.14B
+3.6%
EPS
$1.38
Previous year: $1.29
+7.0%
Customers > $100k TTM Revenue
4K
Previous year: 3.73K
+7.1%
Net Dollar Expansion Rate
98%
Previous year: 105%
-6.7%
Gross Profit
$894M
Previous year: $866M
+3.2%
Cash and Equivalents
$7.7B
Previous year: $1.49B
+415.9%
Free Cash Flow
$458M
Previous year: $453M
+1.0%
Total Assets
$10.7B
Previous year: $9.32B
+14.6%

Zoom

Zoom

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.