Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 278

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 278
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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) Gains on strategic investments, net$45,056 $3,107 1,350.1 %

Gains on strategic investments, net for the three months ended July 31, 2025 and July 31, 2024 were primarily driven by changes in the fair value of our