Zoom VideoCommunications
Q2 FY21 Earnings
August 31, 2020

© 2020 Zoom Video Communications, Inc.

1

Use of Non-GAAP Financial Measures
In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation
includes the following non-GAAP metrics: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin,

non-GAAP operating income, non-GAAP EPS and non-GAAP Free Cash Flow. Non-GAAP metrics have limitations as analytical
tools and you should not consider them in isolation or as a substitute for or superior to the most directly comparable financial
measures prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of non-GAAP metrics versus
their nearest GAAP equivalents. Other companies, including companies in our industry, may calculate non-GAAP metrics differently

or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP metrics astools for comparison. We urge you to review the reconciliation of Zoom's non-GAAP metrics to the most directly comparable GAAPfinancial measures, and not to rely on any single financial measure to evaluate our business. See the Appendix for reconciliation
between each non-GAAP metric and the most comparable GAAP measure.

© 2020 Zoom Video Communications, Inc.

2

Safe Harbor Statement
This presentation and the accompanying oral presentation have been prepared by Zoom Video Communications, Inc. (“Zoom”) for informational purposes only and notfor any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Zoom or
any officer, director, employee, agent or advisor of Zoom. This presentation does not purport to be all-inclusive or to contain all of the information you may desire.
Information provided in this presentation and the accompanying oral presentation speak only as of the date hereof.
This presentation and the accompanying oral presentation include express and implied “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,”“might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar
expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate
to our market size and growth strategy, our reputation in the market, our estimated and projected costs, margins, revenue, expenditures, investments, growth rates,and guidance for the third fiscal quarter 2021 and full fiscal year 2021 as well as trends regarding the same, our future results of operations or financial condition, ourplans and objectives for future operations, growth, initiatives, or strategies and the impact to our business from the COVID-19 pandemic. By their nature, thesestatements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ
materially and adversely from those anticipated or implied in the statements. These assumptions, uncertainties and risks include that, among others, our businesswould be harmed by any decline in new customers and hosts, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects andfuture results of operations, we operate in competitive markets, we do not expect to sustain our revenue growth rate in the future, there is continued uncertainty
regarding the extent and duration of the COVID-19 and the responses of government and private industry thereto, as well as the impact of COVID-19 on the overall
economic environment, any or all of which will have an impact on demand for remote work solutions for business as well as overall distributed face-to-face interactions
and collaboration using Zoom, our business would be harmed by any significant interruptions, delays or outages in services from our co-located data centers, andfailures in internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable. Additionalrisks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under
the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission (the “SEC”), including our quarterly report on Form
10-Q for the fiscal quarter ended April 30, 2020. Forward-looking statements speak only as of the date the statements are made and are based on information
available to Zoom at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Zoom assumes noobligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market
size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight tosuch estimates. In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which we compete arenecessarily subject to a high degree of uncertainty and risk.
© 2020 Zoom Video Communications, Inc.

3

Zoom VideoCommunications
Q2 FY21 Earnings
August 31, 2020

© 2020 Zoom Video Communications, Inc.

4

Strong Q2 FY21 Performance

355%

458%

Yr/Yr

Yr/Yr

Revenue Growth

Growth in Customers with> 10 employees© 2020 Zoom Video Communications, Inc.

35k+
Participants in virtual
Zoom Academy

5Business and Technology Highlights➢Completion of 90-day plan on security and privacy➢Launch of Zoom Hardware as a Service with subscription options for phone and meetingroom hardware to help customers minimize friction around hardware procurement➢Launch of Zoom for Home to support remote work use cases➢Zoom Phone approved for FedRAMP and is generally available in more than 40countries and territories© 2020 Zoom Video Communications, Inc.

6

New and Existing Zoom Customers© 2020 Zoom Video Communications, Inc.

7

Rapid Revenue Growth(in Millions)© 2020 Zoom Video Communications, Inc.

8

Enterprise Traction
Growth in customers generating >$100K in trailing 12-month revenue© 2020 Zoom Video Communications, Inc.

9

Rapidly Growing Customer BaseCustomers1 with more than 10 employees

Q2’21: 36%
Q1’21: 30%Revenue fromcustomers
with 10 or fewer
employees© 2020 Zoom Video Communications, Inc.

1The numbers of customers are rounded down to the nearest hundred.

10Strong Q2 Net Dollar Expansion Rate

TTM Net Dollar
Expansion Rate1+130%
in Q2 FY21•

9th consecutive quarter above 130%•

Demonstrated ability to Land and Expand•

Reflects trust and loyalty with existing customers

1We calculate net dollar expansion rate as of a period end by starting with the ARR from customers with more than 10 employees as of the 12 months prior© 2020 Zoom Video Communications, Inc.

to such period end (Prior Period ARR). We then calculate the ARR from these customers as of the current period end (Current P eriod ARR). The calculationof Current Period ARR includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the tot al Prior Period ARR to arrive atthe net dollar expansion rate. For the trailing 12-months calculation, we take an average of this calculation over the trailing 12 months.
11Growing International Presence
Yr/Yr
ROW
629%

Americas288%© 2020 Zoom Video Communications, Inc.

1Subtotal revenue has been rounded.

12

Q2 FY21 Expenses and Margins

As a % of Revenue

Q2 FY21GAAPResults

Yr/Yr

Non-GAAP1
Results

Yr/Yr

Revenue$664 million

355%$664 million

355%

Gross Margin

71.0%(985bps)72.3%(993bps)Research & Development

6.4%(388bps)

4.3%(430bps)Sales & Marketing

24.0%(3,063bps)

18.5%(2,871bps)

General & Administrative

12.2%(213bps)

7.7%(444bps)Operating Margin

28.3%+2,680bps

41.7%+2,752bps© 2020 Zoom Video Communications, Inc.

1 See appendix for a reconciliation of non-GAAP to GAAP financial measures.

13Growing Future Revenue under Contract
Yr/Yr

Yr/Yr

131%
144%

257%
309%

© 2020 Zoom Video Communications, Inc.

1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect torecognize as revenue, which grew 209% year-over-year. We expect to recognize approximately 72% or $1 billion dollars of the total
RPO as revenue over the next 12 months compared to 62% or $285 million dollars in Q2 last year. Subtotals have been rounded.

14Rapid Cash Flow Growth© 2020 Zoom Video Communications, Inc.

1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by operating a ctivities less purchases ofproperty and equipment. We ended Q2’21 with approximately $1.5 billion dollars in cash, cash equivalents and marketable secur ities, excluding restricted cash.

15

Outlook1

Q3 FY21 and Full Year Outlook

Q3 FY21FY21Revenue$685 - $690 million$2,370 - $2,390 million

Non-GAAP Operating Income$225 - $230 million$730 - $750 million

Weighted Average Share Count

300 million

300 million

Non-GAAP EPS$0.73 - $0.74$2.40 - $2.47© 2020 Zoom Video Communications, Inc.

1 A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward -looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future .

16

© 2020 Zoom Video Communications, Inc.

17

Questions

Thank you

Appendix

GAAP to Non-GAAP Reconciliation
Gross Profit($ in thousands)

QTD – Q2FY20

QTD – Q2FY21

YTD – Q2FY20

YTD – Q2FY21

Total Revenue$145,826$663,520$267,814$991,687

GAAP Gross Profit$117,926$471,249$215,810$695,709(+) Stock-based compensation expense and related payroll taxes$1,922$8,059$2,752$11,441

-$154

-$154

Non-GAAP Gross Profit$119,848$479,462$218,562$707,304

Non-GAAP Gross Margin

82.2%

72.3%

81.6%

71.3%

GAAP R&D$15,054$42,734$28,837$69,123(-) Stock-based compensation expense and related payroll taxes$2,510$10,166$3,674$15,569-$4,006-$4,006$12,544$28,562$25,163$49,548

GAAP S&M$79,652$159,173$143,693$280,729(-) Stock-based compensation expense and related payroll taxes$10,813$36,429$13,440$54,454

Non-GAAP S&M$68,839$122,744$130,253$226,275

GAAP G&A$20,955$81,238$39,458$134,368(-) Stock-based compensation expense, and related payroll taxes$3,224$6,948$5,265$10,384(-) Charitable donation of common stock-$22,312-$23,312(-) Acquisition-related expenses

-$782

-$782

$17,731$51,196$34,193$99,890(+) Acquisition-related expenses

R&D Expenses(-) Acquisition-related expenses

Non-GAAP R&D
S&M Expenses

G&A Expenses

Non-GAAP G&A© 2020 Zoom Video Communications, Inc.

21

GAAP to Non-GAAP Reconciliation
Operating Margin
QTD – Q2FY20

QTD – Q2FY21

YTD – Q2FY20

YTD – Q2FY21

Total revenue$145,826$663,520$267,814$991,687

GAAP operating profit$2,265$188,104$3,822$211,489(+) Stock-based compensation expense and related payroll taxes$18,469$61,602$25,131$91,848(+) Charitable donation of common stock-$22,312-$23,312(+) Acquisition-related expenses-$4,942-$4,942

Non-GAAP operating profit$20,734$276,960$28,953$331,591

Non-GAAP operating margin

14.2%

41.7%

10.8%

33.4%

GAAP net income attributable to common stockholders$5,521$185,742$4,961$212,759(+) Stock-based compensation expense and related payroll taxes$18,469$61,602$25,131$91,848(+) Charitable donation of common stock-$22,312-$23,312(+) Acquisition-related expenses-$4,942-$4,942(+) Undistributed earnings attributable to participating securities$20$247$2,794$305$24,010$274,845$32,886$333,166GAAP net income per share – diluted

$0.02

$0.63

$0.02

$0.72

Non-GAAP net income per share – diluted

$0.08

$0.92

$0.11

$1.12

GAAP weighted-average – diluted

292M

297M

216M

296M

Non-GAAP weighted-average - diluted

292M

297M

291M

296M

($ in thousands)

Net Income

Non-GAAP net income

Earnings Per Share

Weighted Average Shares© 2020 Zoom Video Communications, Inc.

22

GAAP to Non-GAAP Reconciliation
Free Cash Flow
QTD – Q2FY20

QTD – Q2FY21

YTD – Q2FY20

YTD – Q2FY21

Cash flow from operations$31,172$401,346$53,408$660,311(-) Purchases of PPE$14,040$27,981$20,937$35,253

Free cash flow

$17,132$373,365$32,471$625,058($ in thousands)© 2020 Zoom Video Communications, Inc.

23

Historic Metrics© 2020 Zoom Video Communications, Inc.

24