Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 116

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 116
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, 2025 and 2024

Revenue

Year Ended January 31,20252024$ Change% Change(in thousands, except percentages)Revenue$4,665,433 $4,527,224 $138,209 3.1 %

Revenue for the fiscal year ended January 31, 2025 increased by $138.2 million, or 3.1%, compared to the fiscal year ended January 31, 2024. The increase in revenue was due to a 5.2% increase in revenue from subscription services provided to Enterprise customers, of which 63.5% and 36.5% were from existing and new customers, respectively. Revenue from Online customers remained flat year over year.

Cost of RevenueYear Ended January 31,20252024$ Change% Change(in thousands, except percentages)Cost of revenue$1,129,627 $1,077,801 $51,826 4.8 %Gross profit3,535,806 3,449,423 86,383 2.5 %Gross margin75.8 %76.2 %

Cost of revenue for the fiscal year ended January 31, 2025, increased by $51.8 million, or 4.8%, compared to the fiscal year ended January 31, 2024. The increase was primarily due to a $67.5 million increase in hosting and infrastructure costs, partially offset by a $17.4 million decrease in stock-based compensation and a $7.1 million decrease in restructuring costs as a result of the prior year restructuring plan. 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 decreased to 75.8% for the fiscal year ended January 31, 2025 from 76.2% for the fiscal year ended January 31, 2024. The decrease in gross margin was mainly due to increased costs associated with the use of AI functionality along with the investments to upgrade our data center backbone.

Operating Expenses

Research and DevelopmentYear Ended January 31,20252024$ Change% Change(in thousands, except percentages)Research and development$852,415 $803,187 $49,228 6.1 %

Research and development expense for the fiscal year ended January 31, 2025, increased by $49.2 million, or 6