Company: ZM
Filing Date: 2025-05-23
Form Type: 10-Q
Source: 0001585521-25-000090
Chunk: 398

Company: Zoom Communications, Inc.
Filing Date: 2025-05-23
Form: 10-Q
Item: Part I, Item 2
Chunk 398
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2025.

Cash Flows

The following table summarizes our cash flows for the periods presented:

Three Months Ended April 30,20252024(in thousands)Net cash provided by operating activities$489,261 $588,191 Net cash used in investing activities$(125,130)$(107,824)Net cash used in financing activities$(490,530)$(142,451)

Operating Activities

Our largest source of operating cash is cash collections from our customers for subscriptions to our platform. Our primary uses of cash from operating activities are for employee-related expenditures, costs related to hosting our platform, and marketing expenses. Net cash provided by operating activities is impacted by our net income adjusted for certain non-cash items, such as stock-based compensation expense, depreciation and amortization expenses, as well as the effect of changes in operating assets and liabilities.

Net cash provided by operating activities was $489.3 million for the three months ended April 30, 2025, compared to $588.2 million for the three months ended April 30, 2024. The decrease in operating cash flow was primarily due to the first quarter estimated tax payments for both federal and state jurisdictions during the three months ended April 30, 2025. In the prior fiscal year, these payments were made during the three months ended July 31, 2024.

Investing Activities

Net cash used in investing activities of $125.1 million for the three months ended April 30, 2025 was due to net purchases of marketable securities of $99.2 million and purchases of property and equipment of $25.9 million.

Net cash used in investing activities of $107.8 million for the three months ended April 30, 2024 was due to net purchases of marketable securities of $91.0 million, purchases of property and equipment of $18.5 million, and purchases of strategic investments of $3.0 million, partially offset by proceeds from strategic investments of $4.7 million.

Financing Activities

Net cash used in financing activities of $490.5 million for the three months ended April 30, 2025 was primarily due to cash paid for repurchases of common stock of $418.0 million and taxes paid related to net share settlement of equity awards of 

31

$82.2 million, partially offset by proceeds from employee equity transactions to be remitted to employees and tax authorities, net, of $8.7 million.

Net cash used in financing