Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 413

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 413
---
 a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

32

Comparison of the Six Months Ended July 31, 2025 and 2024

RevenueSix Months Ended July 31, 20252024% Change(in thousands) Revenue$2,391,942 $2,303,754 3.8 %

Revenue for the six months ended July 31, 2025 increased by $88.2 million, or 3.8%, compared to the six months ended July 31, 2024. The increase in revenue was due to a 6.4% growth in revenue from Enterprise customers, of which 53.6% and 46.4% was from new and existing customers, respectively. Revenue from Online customers remained flat year over year.

Cost of RevenueSix Months Ended July 31, 20252024% Change(in thousands)Cost of revenue$551,567 $558,391 (1.2)%Gross profit$1,840,375 $1,745,363 5.4 %Gross margin76.9 %75.8 %

Cost of revenue for the six months ended July 31, 2025 decreased by $6.8 million, or 1.2%, compared to the six months ended July 31, 2024. The decrease was primarily due to a lower personnel related expenses of $9.8 million, including an $11.2 million decline in stock-based compensation, due to changes in our equity program.

Gross margin increased to 76.9% for the six months ended July 31, 2025 from 75.8% for the six months ended July 31, 2024, mainly due to a decrease in stock-based compensation.

Operating Expenses

Research and DevelopmentSix Months Ended July 31, 20252024% Change(in thousands) Research and development$411,863 $412,314 (0.1)%

Research and development expense for the six months ended July 31, 2025 decreased by $0.5 million, or 0.1%, compared to the six months ended July 31, 2024. A $20.8 million decrease in stock-based compensation was largely offset by continued investments in AI-innovation, including a $10.0 million increase in personnel related expenses from higher headcount, along with additional costs associated with AI-related software and facilities