Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 170

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 170
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868 Total$305,346 $194,850 $145,565 Effective tax rate23.2 %23.4 %58.4 %Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets as of January 31, 2025 and 2024 are as follows:

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Table of Contents

 As of January 31, 20252024 (in thousands)Deferred tax assets:Net operating loss carryforwards$7,362 $12,995 Research and development credit carryforwards6,586 16,610 Stock-based compensation59,565 84,906 Accruals and reserves43,953 39,295 Deferred revenue328,114 308,152 Capitalized research expenditures514,667 379,102 Operating lease liabilities16,551 17,829 Other assets2,957 4,105 Total deferred tax assets979,755 862,994 Valuation allowance(28,990)(35,949)Total deferred tax assets net of valuation allowance950,765 827,045 Deferred tax liabilities:Property and equipment and intangible assets(38,343)(35,007)Deferred contract acquisition costs(76,439)(83,862)Operating right-of-use assets(14,233)(14,396)Strategic investments(75,290)(35,480)Total deferred tax liabilities(204,305)(168,745)Net deferred tax assets$746,460 $658,300 The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence during the year ended January 31, 2025, we believe that it is more likely than not that the tax benefits relating to U.S. losses that are capital in nature and certain state deferred tax assets may not be realized prior to expiration. Accordingly, we have maintained a valuation allowance against these deferred tax assets and intend to maintain the applicable valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. As of January 31, 2025, we had net operating loss carryforwards of approximately $1.8 million for federal income tax purposes, and $12.5