Zoom VideoCommunications
Q2 FY22 Earnings
August 30, 2021

© 2021 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 thefollowing non-GAAP metrics: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income,non-GAAP EPS, and 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 as tools for comparison. We urge you to review the reconciliation of Zoom's non-GAAP metrics to the most directly comparable GAAP ﬁnancial
measures, and not to rely on any single ﬁnancial measure to evaluate our business. See the Appendix for reconciliation between each non-GAAP metricand the most comparable GAAP measure.

© 2021 Zoom Video Communications, Inc.

Safe Harbor statement
This presentation and the accompanying oral presentation have been prepared by Zoom Video Communications, Inc. (“Zoom”) for informational purposes only and not for any otherpurpose. 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 theaccompanying oral presentation speak only as of the date hereof.
This presentation and the accompanying oral presentation contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of1995, including statements regarding our ﬁnancial outlook for the third quarter and full ﬁscal year 2022, Zoom's expectations regarding ﬁnancial and business trends, Zoom’s growthstrategy and business aspirations to drive evolution on multiple fronts as organizations and people reimagine work, communications and collaboration, and Zoom being well-positioned tobe successful as a platform. 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-lookingstatements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance orachievement to differ materially and adversely from those anticipated or implied in the statements, including: declines in new customers and hosts, renewals or upgrades, difﬁculties inevaluating our prospects and future results of operations given our limited operating history, competition from other providers of communications platforms, continued uncertainty
regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry thereto, including the potential effect on our user growth rate once theimpact of the COVID-19 pandemic tapers, particularly as a vaccine becomes widely available, and users return to work or school or are otherwise no longer subject to shelter-in-place
mandates, 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 businesses as well asoverall distributed, face-to-face interactions and collaboration using Zoom, delays or outages in services from our co-located data centers, and failures in internet infrastructure orinterference with broadband access, which could cause current or potential users to believe that our systems are unreliable.
Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under thecaption “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, 2021. 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 no obligation to update forward-looking statements to reﬂect events orcircumstances 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 andother data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections,assumptions, and estimates of our future performance and the future performance of the markets in which we compete are necessarily subject to a high degree of uncertainty and risk.

© 2021 Zoom Video Communications, Inc.

Great wins with industry leaders© 2021 Zoom Video Communications, Inc.

Continued strong enterprise traction$1M+ ARR1 customer
accounts

77%• Many strong customer adds and upsells• Increased traction in APAC with channel andlarge customer wins

• Strong performance in Zoom Phone and ZoomRooms

1ARR stands for Annual Recurring Revenue© 2021 Zoom Video Communications, Inc.

Zoom Phone acceleration●

Number of $100k+ ARR
customers grew by 241% YoY(32% QoQ) to 317, which
includes 21 $1M+ customers1●

Will reach 2 million seats inAugust●26 customers with 10k+ paidseats as of end of Q2 FY22(added 8 in H1 FY22)

241%

1$100k+ and $1M+ ZP ARR customers refer to the total number of customer accounts where Zoom
Phone-related ARR meets or exceeds $100,000 and $1 million, respectively. The $1M+ ARR customers
in the graph are a subset of the $100k+ ARR customers.
© 2021 Zoom Video Communications, Inc.

Strong revenue growth in Q2(in millions)

54%

355%

96%

© 2021 Zoom Video Communications, Inc.

Expanding customer base
Customers generating >$100k in
trailing 12-month revenueCustomers1 with morethan 10 employees

Revenue Share bycustomer cohort

36%131%1© 2021 Zoom Video Communications, Inc.

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

Strong Net Dollar Expansion Rate

TTM Net DollarExpansion Rate1• 13th consecutive quarter above 130%>130%• Demonstrated ability to land and expandin Q2 FY22

• Reﬂects trust and loyalty with existing customers

1© 2021 Zoom Video Communications, Inc.

We 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 to such period
end (Prior Period ARR). We then calculate the ARR from these customers as of the current period end (Current Period ARR). The calculation of Current Period ARR
includes any upsells, contraction and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the net dollar expansion rate. For
the trailing 12-months calculation, we take an average of this calculation over the trailing 12 months.

Growing international presence
Revenue1

Yr/Yr Growth(in millions)

Revenue Share byRegion1

ROW62%

Americas50%1© 2021 Zoom Video Communications, Inc.

Subtotal revenue has been rounded.

Q2 FY22 expenses and margins

Yr/Yr

Non-GAAP1
Results

Yr/Yr$1,021 million

54%$1,021 million

54%

Gross Margin

74.4%+340 bps

76.2%+396 bps

R & D Margin

8.1%+162 bps

5.3%+99 bps

S & M Margin

26.5%+256 bps

20.7%+216 bps

G & A Margin

11.0%(126 bps)

8.7%+97 bpsOperating Margin

28.8%+49 bps

41.6%(17 bps)© 2021 Zoom Video Communications, Inc.

GAAPResults
Revenue1

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

Growing future revenue under contract
Total RPO1(in millions)

Yr/Yr Growth

Yr/Yr Growth

Total
66%

Total
66%

Unbilled74%

Non-Current
85%

Deferred Revenue
59%

Current
58%

1© 2021 Zoom Video Communications, Inc.

Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect torecognize as revenue. We expect to recognize approximately 69% or $1.6 billion dollars of the total RPO as revenue over the next 12months compared to 72% or $1.0 billion dollars in Q2 last year. Subtotals have been rounded.

Renewal seasonality for annual+ business shifted to Q1
View from startof FY211

View from startof FY22

Front-weighted renewals seasonality2 will persist for the foreseeable future due to the scaleof Zoom’s base and our practice of upselling coterminously with the initial contract
1

Percentages are rounded and may not add up to 100%.
Renewal seasonality for a given quarter is calculated by dividing the total ARR up for renewal in the quarter from existing contracts with a term of
12 months or more by the total ARR up for renewal in the ﬁscal year from existing contracts with a term of 12 months or more.
2© 2021 Zoom Video Communications, Inc.

Rapid cash ﬂow growth
Operating Cash Flow(in millions)Free Cash Flow1(in millions)

17%
22%

~$5.1B
in cash, cash
equivalents andmarketable securities,
excluding restrictedcash1© 2021 Zoom Video Communications, Inc.

See appendix for a reconciliation of non-GAAP to GAAP ﬁnancial measures. We deﬁne FCF as GAAP net cash provided by operating activities less purchases of property and equipment.

Q3 and Fiscal Year 2022 outlook

Q3 FY22FY22Revenue$1,015 - $1,020 million$4,005 - $4,015 million

Non-GAAP Operating
Income$340 - $345 million$1,500 - $1,510 million

Weighted Average ShareCount309 million

308 million

Non-GAAP EPS$1.07 - $1.08$4.75 - $4.79

Outlook11© 2021 Zoom Video Communications, Inc.

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, although it isimportant to note that these factors could be material to Zoom’s results computed in accordance with GAAP..

Financial Analyst Brieﬁng Track
SEPT 13, 2pm-4pm ET (11am-1pm PT)
Register @ zoomtopia.com
Note:pleaseupgradeyourInc.
Zoom client to join
© 2021
Zoom VideoCommunications,

QA© 2021 Zoom Video Communications, Inc.

17

Thank You© 2021 Zoom Video Communications, Inc.

© 2021 Zoom Video Communications, Inc.

18

Appendix© 2021 Zoom Video Communications, Inc.

19

GAAP to Non-GAAP Reconciliation($ in Thousands)

Q2 FY21Q2 FY22H1 FY21H1 FY22

Gross Proﬁt
Total Revenue
GAAP Gross Proﬁt(+) Stock-based compensation expense and related payroll taxes(+) Acquisition-related expense
Non-GAAP Gross Proﬁt
Non-GAAP Gross Margin$663,520$471,249$8,059$154$479,462
72.3%$1,021,495$760,239$17,557$754$778,550
76.2%$991,687$695,709$11,441$154$707,304
71.3%$1,977,732$1,451,482$32,201$1,446$1,485,129
75.1%

R&D Expenses
GAAP R&D(-) Stock-based compensation expense and related payroll taxes(-) Acquisition-related expense
Non-GAAP R&D$42,734$(10,166)$(4,006)$28,562$82,311$(24,067)$(4,155)$54,089$69,123$(15,569)$(4,006)$49,548$147,486$(45,253)$(6,747)$95,486

S&M Expenses
GAAP S&M(-) Stock-based compensation expense and related payroll taxes
Non-GAAP S&M$159,173$(36,429)$122,744$271,179$(60,146)$211,033$280,729$(54,454)$226,275$516,846$(114,896)$401,950

G&A Expenses
GAAP G&A(-) Stock-based compensation expense and related payroll taxes(-) Litigation settlements, net(-) Charitable donation of common stock(-) Acquisition-related expense
Non-GAAP G&A$81,238$(6,948)$(22,312)$(782)$51,196$112,146$(14,972)$(8,411)$88,763$134,368$(10,384)$(23,312)$(782)$99,890$266,235$(28,767)$(66,916)$(8,411)$162,141© 2021 Zoom Video Communications, Inc.

GAAP to Non-GAAP Reconciliation($ in Thousands except EPS)Q2 FY21Q2 FY22H1 FY21H1 FY22

Operating Proﬁt
Total Revenue
GAAP Operating Proﬁt(+) Stock-based compensation expense and related payroll taxes(+) Litigation settlements, net(+) Charitable donation of common stock(+) Acquisition-related expense
Non-GAAP Operating Proﬁt
Non-GAAP Operating Margin$663,520$188,104$61,602$22,312$4,942$276,960
41.7%$1,021,495$294,603$116,742$13,320$424,665
41.6%$991,687$211,489$91,848$23,312$4,942$331,591
33.4%$1,977,732$520,915$221,117$66,916$16,604$825,552
41.7%

Net Income
GAAP net income attributable to common stockholders(+) Stock-based compensation expense and related payroll taxes(+) Litigation settlements, net(+) Charitable donation of common stock(+) Acquisition-related expenses(+) Undistributed earnings attributable to participating securities(-) Gains on strategic investments
Non-GAAP net income$185,742$61,602$22,312$4,942$247$274,845$316,930$116,742$13,320$154$(32,076)$415,070$212,759$91,848$23,312$4,942$305$333,166$544,306$221,117$66,916$16,604$309$(32,076)$817,176

$0.63
$0.92

$1.04
$1.36

$0.72
$1.12

$1.78
$2.67

297,162,309

305,861,051

296,408,229

305,652,628

Earnings Per ShareGAAP net income per share –diluted
Non-GAAP net income per share –diluted
Weighted Average Shares
GAAP and Non-GAAP weighted-average –diluted© 2021 Zoom Video Communications, Inc.

GAAP to Non-GAAP Reconciliation($ in Thousands)

Q2 FY21Q2 FY22H1 FY21H1 FY22

Cash Flow from Operations$401,346$468,012$660,311$1,001,314(-) Purchases of PPE$(27,981)$(12,975)$(35,253)$(92,049)

Free Cash Flow

$373,365$455,037$625,058$909,265

Net Cash Used in Investing Activities$(172,527)$(144,204)$(235,561)$(1,364,182)

Net Cash Provided by Financing Activities$44,516$71,383$272,642$65,104

Free Cash Flow

© 2021 Zoom Video Communications, Inc.

Historic Metrics($ in millions)
Revenue
Y/Y growth

GAAP Operating Income
Stock-based compensation, related payroll taxes,
charitable donation of common stock,acquisition-related expenses, and litigation
settlements, net
Non-GAAP Operating Income
Operating Cash Flow
Capital Expenditures
Free Cash Flow
RPO
Y/Y growth

TTM Net $ Expansion RateCustomers >10 Employees

Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22
$166.6$188.3$328.2$663.5$777.2$882.5$956.2 $1,021.5
85%

78%

169%

355%

367%

369%

191%

54%

$(1.7)

$10.6

$23.4

$188.1$192.2$256.1$226.3$294.6

$22.9
$21.3
$61.9
$(7.2)$54.7$517.0

$27.9
$31.2
$88.9
$98.5
$104.8$174.6$130.1$38.4$54.6$277.0$290.8$360.9$400.9$424.7$36.6$259.0$401.3$411.5$399.4$533.3$468.0$(10.0)$(7.3)$(28.0)$(23.3)$(21.5)$(79.1)$(13.0)$26.6$251.7$373.4$388.2$377.9$454.2$455.0$604.1 $1,067.9 $1,415.8 $1,631.2 $1,750.9 $2,073.4 $2,346.3

102%

94%

184%

209%

215%

190%

94%

66%

>130%
74,100>130%
81,900>130%
265,400>130%
370,200>130%
433,700>130%
467,100>130%
497,000>130%
504,900

Y/Y growth

67%

61%

354%

458%

485%

470%

87%

36%

Customers >$100K TTM Revenue

546641769

988

1,289

1,644

1,999

2,278

Y/Y growth

97%

86%90%

112%

136%

156%

160%

131%

© 2021 Zoom Video Communications, Inc.