Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 412

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 412
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995 $358,770 (5.5)%

Sales and marketing expense for the three months ended July 31, 2025 decreased by $19.8 million, or 5.5%, compared to the three months ended July 31, 2024. The decrease was primarily driven by lower stock-based compensation of $21.1 million.

General and AdministrativeThree Months Ended July 31, 20252024% Change(in thousands)General and administrative$76,885 $109,535 (29.8)%

General and administrative expense for the three months ended July 31, 2025 decreased by $32.7 million, or 29.8%, compared to the three months ended July 31, 2024. The favorable variance was primarily driven by the reversal of a previous accrual of $18.0 million related to an SEC investigation and a $16.6 million decrease in personnel-related expenses, including a $9.9 million decrease in stock-based compensation.

Gains on Strategic Investments, Net

Three Months Ended July 31, 20252024% Change(in thousands) Gains on strategic investments, net$45,056 $3,107 1,350.1 %

Gains on strategic investments, net for the three months ended July 31, 2025 and July 31, 2024 were primarily driven by changes in the fair value of our publicly and privately held securities.

Other Income, NetThree Months Ended July 31, 20252024% Change(in thousands) Other income, net$81,371 $87,412 (6.9)%

Other income, net for the three months ended July 31, 2025 decreased by $6.0 million, or 6.9%, compared to the three months ended July 31, 2024. The decrease was primarily due to lower investment yields from cash and marketable securities.

Provision for Income TaxesThree Months Ended July 31, 20252024% Change(in thousands) Provision for income taxes$89,570 $73,874 21.2 %

Provision for income taxes for the three months ended July 31, 2025 increased by $15.7 million, or 21.2%, compared to the three months ended July 31, 2024. The year-over-year change was primarily due to an increase in income before taxes partially offset by