Company: ZM
Filing Date: 2025-05-23
Form Type: 10-Q
Source: 0001585521-25-000090
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Company: Zoom Communications, Inc.
Filing Date: 2025-05-23
Form: 10-Q
Item: Item 1A
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SUMMARY RISK FACTORS

Investing in our Class A common stock involves numerous risks, including the risks described in “Part II—Other Information, Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q. Below are some of these risks, any one of which could materially adversely affect our business, financial condition, results of operations, and prospects.

•Our business depends on our ability to attract new customers, retain and upsell additional products and new product categories to existing customers, and upgrade free users to one of our paid offerings. Any decline in new customers, renewals, or upgrades would harm our business.

•Our revenue growth rate has fluctuated in prior periods, and may continue to decline in future periods.

•Interruptions, delays, or outages in service from our co-located data centers or cloud hosting services and a variety of other factors, would impair, and in the past have impaired, the delivery of our services, require us to issue credits or pay penalties, and harm our business.

•We operate in competitive markets, and we must continue to compete effectively. Many of our actual and potential competitors benefit from competitive advantages over us, such as greater name recognition; longer operating histories; more varied products and services; larger marketing budgets; more established marketing, customer and partner relationships; more third-party integrations; greater accessibility across devices and applications; greater access to larger user bases; major distribution agreements with hardware manufacturers and resellers; and greater financial, technical, and other resources. In addition, as we introduce new products and services to our platform, and with the introduction of new technologies and market entrants, we expect competition to intensify in the future.

•Our business may be significantly affected by changes in the economy, including any resulting effect on consumer or business spending.

•As we increase sales to large organizations, our sales cycles have and could continue to lengthen, and we could experience greater deployment challenges.

•We generate revenue from sales of subscriptions to our platform, and any decline in demand for our platform or for communications and collaboration technologies in general would harm our business.

•We have incurred net losses in the past and there are no assurances we will be able to maintain or increase profitability in the future.

•We may not be able to respond to rapid technological changes, extend our platform or develop new features.

•Our security measures, and those of the third parties with whom we work, have been compromised in the past and may be compromised in the future. If our security measures