Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 409

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 409
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Sales and marketing expenses primarily consist of personnel-related expenses directly associated with our sales and marketing organization. Other sales and marketing expenses include advertising and promotional events to promote our brand, such as awareness programs, digital programs, public relations, tradeshows, and our user conference, Zoomtopia, and allocated overhead. Sales and marketing expenses also include credit card processing fees related to sales and amortization of deferred contract acquisition costs.

General and Administrative

General and administrative expenses primarily consist of personnel-related expenses associated with our finance, legal, and other organizations; professional fees for external legal, accounting, and other consulting services; expected credit losses; insurance; certain indirect taxes; litigation settlements; corporate security and regulatory expenses; and allocated overhead.

Gains on Strategic Investments, Net

Gains on strategic investments, net consist primarily of remeasurement gains or losses on our equity investments.

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Other Income, Net

Other income, net consists primarily of interest income and net accretion on our marketable securities and effect of changes in foreign currency exchange rates.

Provision for Income Taxes

Provision for income taxes consists primarily of income taxes related to federal, state, and foreign jurisdictions where we conduct business.

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Results of Operations

The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of revenue for each of the periods indicated:

Three Months Ended July 31, Six Months Ended July 31, 2025202420252024(in thousands)Revenue$1,217,227 $1,162,520 $2,391,942 $2,303,754 Cost of revenue (1)273,165 285,089 551,567 558,391 Gross profit944,062 877,431 1,840,375 1,745,363 Operating expenses:Research and development (1)206,447 206,756 411,863 412,314 Sales and marketing (1)338,995 358,770 685,965 706,778 General and administrative (1)76,885 109,535 179,220 220,879 Total operating expenses622,327 675,061 1,277,048 1,339,971 Income from operations321,735 202,370 563,327 405,392 Gains on strategic investments, net45,056 3,107 31,437 20,461 Other income, net81,371