Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 315

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 315
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 2024. The decline was mainly due to a $7.1 million reduction in stock-based compensation as well as lower hosting costs. The reduction in SBC is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Gross margin grew to 77.6% for the three months ended July 31, 2025, from 75.5% for the three months ended July 31, 2024. The increase in gross margin was mainly due to a decrease in stock-based compensation and hosting costs.

Operating Expenses

Research and DevelopmentThree Months Ended July 31, 20252024% Change(in thousands) Research and development$206,447 $206,756 (0.1)%

Research and development expense for the three months ended July 31, 2025 decreased by $0.3 million, or 0.1%, compared to the three months ended July 31, 2024. A $11.1 million decrease in stock-based compensation was largely offset by continued investment in AI-innovation, including a $6.3 million increase in personnel-related expenses as a result of higher headcount.

31

Sales and MarketingThree Months Ended July 31, 20252024% Change(in thousands)Sales and marketing$338,995 $358,770 (5.5)%

Sales and marketing expense for the three months ended July 31, 2025 decreased by $19.8 million, or 5.5%, compared to the three months ended July 31, 2024. The decrease was primarily driven by lower stock-based compensation of $21.1 million.

General and AdministrativeThree Months Ended July 31, 20252024% Change(in thousands)General and administrative$76,885 $109,535 (29.8)%

General and administrative expense for the three months ended July 31, 2025 decreased by $32.7 million, or 29.8%, compared to the three months ended July 31, 2024. The favorable variance was primarily driven by the reversal of a previous accrual of $18.0 million related to an SEC investigation and a $16.6 million decrease in personnel-related expenses, including a $9.9 million decrease in stock-based compensation.

Gains on Strategic Investments, Net

Three Months Ended July 31, 20252024% Change(in thousands