Beat - Guides Up
May 24, 2022
Communications reported financial results for the first fiscal quarter
ended April 30, 2022.
The firm had earnings of $1.03 per share with only 87 cents per share
On the top line,
$1.07 billion came with
$1.07 billion expected.
For FY 2023, Zoom guided revenue
between $4.53 billion and $4.55 billion, versus the $4.55 billion
expectation. Zoom is looking for earnings between $3.70 and $3.77 per
share, versus $3.53 analysts were expecting.
“In Q1, we launched Zoom
Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our
continued focus on enhancing the customer experience and promoting
hybrid work. We believe these innovative solutions will further expand
our market opportunity for future growth and expansion with customers,”
said Zoom founder and CEO, Eric S. Yuan. “Additionally in Q1, we
delivered revenue of over one billion dollars driven by ongoing success
in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats
during the quarter. We also maintained strong profitability and cash
flow, including 17% in GAAP operating margin, approximately 37% non-GAAP
operating margin, approximately 49% operating cash flow margin, and over
46% adjusted free cash flow margin.”
Quarter Fiscal Year 2023 Financial Highlights:
revenue for the first quarter was $1,073.8 million, up 12% year
Operations and Operating Margin: GAAP income from operations for
the first quarter was $187.1 million, compared to GAAP income
from operations of $226.3 million in the first quarter of fiscal
year 2022. After adjusting for stock-based compensation expense
and related payroll taxes, litigation settlements, net, and
acquisition-related expenses, non-GAAP income from operations
for the first quarter was $399.6 million, compared to non-GAAP
income from operations of $400.9 million in the first quarter of
fiscal year 2022. For the first quarter, GAAP operating margin
was 17.4% and non-GAAP operating margin was 37.2%.
Net Income and
Diluted Net Income Per Share: GAAP net income attributable to
common stockholders for the first quarter was $113.6 million, or
$0.37 per share, compared to GAAP net income attributable to
common stockholders of $227.4 million, or $0.74 per share in the
first quarter of fiscal year 2022.
Non-GAAP net income for the first quarter was $315.8 million,
after adjusting for stock-based compensation expense and related
payroll taxes, litigation settlements, net, losses on strategic
investments, net, acquisition-related expenses, undistributed
earnings attributable to participating securities, and the tax
effects on non-GAAP adjustments. Non-GAAP net income per share
was $1.03. In the first quarter of fiscal year 2022, non-GAAP
net income was $402.1 million, or $1.32 per share.
Cash and Marketable
Securities: Total cash, cash equivalents, and marketable
securities, excluding restricted cash, as of April 30, 2022 was
Cash Flow: Net cash
provided by operating activities was $526.2 million for the
first quarter, compared to $533.3 million in the first quarter
of fiscal year 2022. Adjusted free cash flow, which is net cash
provided by operating activities less purchases of property and
equipment, plus litigation settlement payments, net, was
$501.1 million, compared to $454.2 million in the first quarter
of fiscal year 2022.
Metrics: Drivers of total revenue included acquiring new customers
and expanding across existing customers. At the end of the first
quarter of fiscal year 2023, Zoom had:
198,900 Enterprise customers, up 24% from the same quarter last
A trailing 12-month
net dollar expansion rate for Enterprise customers of 123%.
contributing more than $100,000 in trailing 12 months revenue,
up approximately 46% from the same quarter last fiscal year.
Outlook: Zoom is providing the following guidance for its second
quarter fiscal year 2023 and its full fiscal year 2023.
Quarter Fiscal Year 2023: Total revenue is expected to be
between $1.115 billion and $1.120 billion and non-GAAP income
from operations is expected to be between $360.0 million and
$365.0 million. Non-GAAP diluted EPS is expected to be between
$0.90 and $0.92 with approximately 308 million non-GAAP weighted
average shares outstanding.
Full Fiscal Year
2023: Total 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.
Full fiscal year non-GAAP diluted EPS is expected to be between
$3.70 and $3.77 with approximately 309 million non-GAAP weighted
average shares outstanding.