Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 411

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 411
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 31, 20252024% Change(in thousands) Revenue$1,217,227 $1,162,520 4.7 %

Revenue for the three months ended July 31, 2025 increased by $54.7 million, or 4.7%, compared to the three months ended July 31, 2024. The increase was driven by 7.0% growth in revenue from Enterprise customers, of which 57.4% and 42.6% was from new and existing customers, respectively, and by a 1.4% increase in revenue from Online customers.

Cost of RevenueThree Months Ended July 31, 20252024% Change(in thousands)Cost of revenue$273,165 $285,089 (4.2)%Gross profit944,062 877,431 7.6 %Gross margin77.6 %75.5 %

Cost of revenue for the three months ended July 31, 2025 decreased by $11.9 million, or 4.2%, compared to the three months ended July 31, 2024. The decline was mainly due to a $7.1 million reduction in stock-based compensation as well as lower hosting costs. The reduction in SBC is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Gross margin grew to 77.6% for the three months ended July 31, 2025, from 75.5% for the three months ended July 31, 2024. The increase in gross margin was mainly due to a decrease in stock-based compensation and hosting costs.

Operating Expenses

Research and DevelopmentThree Months Ended July 31, 20252024% Change(in thousands) Research and development$206,447 $206,756 (0.1)%

Research and development expense for the three months ended July 31, 2025 decreased by $0.3 million, or 0.1%, compared to the three months ended July 31, 2024. A $11.1 million decrease in stock-based compensation was largely offset by continued investment in AI-innovation, including a $6.3 million increase in personnel-related expenses as a result of higher headcount.

31

Sales and MarketingThree Months Ended July 31, 20252024% Change(in thousands)Sales and marketing$338,