Company: ZM
Filing Date: 2025-05-23
Form Type: 10-Q
Source: 0001585521-25-000090
Chunk: 271

Company: Zoom Communications, Inc.
Filing Date: 2025-05-23
Form: 10-Q
Item: Part I, Item 1
Chunk 271
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.9%, compared to the three months ended April 30, 2024. The increase was primarily due to increased hosting and infrastructure costs partially offset by a $4.1 million decrease in stock-based compensation. The increase in hosting costs was due to the increased use of AI functionality along with investments to upgrade our data center backbone.

Gross margin increased to 76.3% for the three months ended April 30, 2025, from 76.1% for the three months ended April 30, 2024. The increase in gross margin was mainly due to the decrease in stock-based compensation.

Operating Expenses

Research and DevelopmentThree Months Ended April 30,20252024% Change(in thousands) Research and development$205,416 $205,558 (0.1)%

Research and development expense for the three months ended April 30, 2025 decreased by $0.1 million, or 0.1%, compared to the three months ended April 30, 2024. The decrease was driven by a $9.6 million decrease in stock-based compensation largely offset by our continued investment in AI-innovation, including a $3.7 million increase in personnel-related expenses as a result of increased headcount, as well as costs from AI-related software and facilities used in development.

Sales and MarketingThree Months Ended April 30,20252024% Change(in thousands)Sales and marketing$346,970 $348,008 (0.3)%

Sales and marketing expense for the three months ended April 30, 2025, decreased by $1.0 million, or 0.3%, compared to the three months ended April 30, 2024. The decrease was primarily due to a $8.8 million decrease in stock-based compensation 

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offset by a $4.0 million increase in salaries, payroll taxes and benefits, along with costs to support our customer engagement and growth initiatives.

General and AdministrativeThree Months Ended April 30,20252024% Change(in thousands)General and administrative$102,335 $111,344 (8.1)%

General and administrative expense for the three months ended April 30, 2025, decreased by $9.0 million, or 8.1%, compared to the three months ended April 30, 2024. The decrease was primarily due a $7.3 million decrease in personnel-related expenses, including a $