Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 168

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 168
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Year Ended January 31,202520242023Expected term (years)0.5 - 2.00.5 - 2.00.5 - 2.0Expected volatility28.4% - 43.3%30.0% - 57.6%57.6% - 64.6%Risk-free interest rate4.2% - 5.4%4.6% - 5.4%2.2% - 4.8%Expected dividend yield———The stock-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows:Year Ended January 31,202520242023(in thousands)Cost of revenue$124,561 $143,798 $174,546 Research and development333,767 336,309 361,720 Sales and marketing319,631 381,298 532,371 General and administrative153,350 195,756 217,115 Total stock-based compensation expense931,309 1,057,161 1,285,752 Benefit from income taxes(176,463)(197,068)(199,971)Total stock-based compensation expense recorded to net income$754,846 $860,093 $1,085,781 

11.    Restructuring Activities

On February 7, 2023, we announced a restructuring plan (the “Plan”) intended to reduce operating costs and continue advancing our ongoing commitment to profitable growth. The Plan included a reduction of our then-current workforce by approximately 15%. The execution of the Plan was completed as of July 31, 2023, and therefore no restructuring expense was recorded for the year ended January 31, 2025.For the year ended January 31, 2024, we recorded net restructuring costs of $73.0 million, which consisted of $54.4 million related to employee transition, severance payments, and employee benefits; $17.3 million related to stock-based compensation awards; and $1.3 million for other related expenses.The following table summarizes our restructuring expenses that were recorded as an operating expense in the consolidated statement of operations for the year ended January 31, 2024:Year Ended January 31, 2024 (in thousands)Cost of revenue$7,119 Research and development19,629 Sales and marketing32,930 General and administrative13,315 Total restructuring expenses$72,993