Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 251

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 1
Chunk 251
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 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which introduces a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025 and interim periods within those annual reporting periods. Early adoption is permitted. We early adopted ASU 2025-05 as of the third quarter of fiscal year 2026. Adoption of the ASU did not have an impact on our consolidated financial statements.

2.    Revenue Recognition

Disaggregation of RevenueThe following table summarizes revenue by region based on the billing address of customers:Three Months Ended October 31,Nine Months Ended October 31,2025202420252024AmountPercentage ofRevenueAmountPercentage ofRevenueAmountPercentage ofRevenueAmountPercentage ofRevenue(in thousands, except percentages)Americas$886,660 72.1 %$846,289 71.9 %$2,608,329 72.0 %$2,500,700 71.8 %Asia Pacific (“APAC”)149,844 12.2 144,339 12.3 439,952 12.1 424,968 12.2 Europe, Middle East, and Africa (“EMEA”)193,331 15.7 186,913 15.8 573,496 15.9 555,627 16.0 Total$1,229,835 100.0 %$1,177,541 100.0 %$3,621,777 100.0 %$3,481,295 100.0 %Contract BalancesWe receive payments from customers based on a billing schedule as established in our customer contracts. Accounts receivable are recorded when we contractually have the right to consideration. In some arrangements, a right to consideration for our performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. The amount of unbilled accounts receivable included within accounts receivable, net was $90.8 million and $118.5 million as of October 31, 2025 and January 31, 2025