Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 117

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 117
---
.1%, compared to the fiscal year ended January 31, 2024. The increase was driven by our continued investments in AI-first innovation, which consisted of a $39.4 million increase in payroll taxes and benefits partially offset by $19.6 million decrease in restructuring costs as a result of the prior year restructuring plan. The remaining increase is due to costs from AI-related software and facilities used in development.

Sales and MarketingYear Ended January 31,20252024$ Change% Change(in thousands, except percentages)Sales and marketing$1,427,384 $1,541,307 $(113,923)(7.4)%

Sales and marketing expense for the fiscal year ended January 31, 2025, decreased by $113.9 million, or 7.4%, compared to the fiscal year ended January 31, 2024. The decrease in sales and marketing expense was primarily due to a $53.5 million 

58

Table of Contents

decrease in stock-based compensation expense, a $32.9 million decrease in restructuring costs as a result of the prior year restructuring plan, and a $29.2 million decrease in marketing spend.

Year Ended January 31,20252024$ Change% Change(in thousands, except percentages)General and administrative$442,712 $579,650 $(136,938)(23.6)%

General and administrative expense for the fiscal year ended January 31, 2025, decreased by $136.9 million, or 23.6%, compared to the fiscal year ended January 31, 2024. The decrease in general and administrative expense was primarily due to  a $39.4 million decrease in stock-based compensation expense, a $37.8 million decrease in litigation settlements, a $15.2 million decrease in bad debt expense, a $13.3 million decrease in restructuring costs as a result of the prior year restructuring plan; and a $5.4 million decrease in legal expenses.

Gains (Losses) on Strategic Investments, Net

Year Ended January 31,20252024$ Change% Change(in thousands, except percentages)Gains (losses) on strategic investments, net$177,142 $109,770 $67,372 61.4 %

Gains on strategic investments, net, of $177.1 million and $109.8 million for the fiscal years ended January