Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 415

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 2
Chunk 415
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 31,20252024% Change(in thousands) Research and development$621,960 $635,294 (2.1)%

Research and development expense for the nine months ended October 31, 2025 decreased by $13.3 million, or 2.1%, compared to the nine months ended October 31, 2024. The decrease was mainly driven by a $40.4 million decrease in stock-based compensation due to changes in our equity program, largely offset by continued investments in AI innovation, including a $18.9 million increase in personnel related expenses from higher headcount, along with additional costs associated with AI-related software and facilities.

Sales and Marketing

Nine Months Ended October 31,20252024% Change(in thousands)Sales and marketing$1,028,779 $1,068,481 (3.7)%

Sales and marketing expense for the nine months ended October 31, 2025 decreased by $39.7 million, or 3.7%, compared to the nine months ended October 31, 2024. The decrease in sales and marketing expense was mainly driven by a 

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$49.3 million decrease in stock-based compensation due to changes in our equity program, partially offset by costs to support our customer engagement and growth initiatives.

General and AdministrativeNine Months Ended October 31,20252024% Change(in thousands)General and administrative$273,960 $347,016 (21.1)%

General and administrative expense for the nine months ended October 31, 2025 decreased by $73.1 million, or 21.1%, compared to the nine months ended October 31, 2024. The favorable variance was primarily driven by a $36.0 million change related to an SEC investigation accrual recorded in the prior year and reversed in the current year, as well as a $24.6 million reduction in stock-based compensation and a $7.7 million decrease in acquisition-related expenses.

Gains on Strategic Investments, Net

Nine Months Ended October 31,20252024% Change(in thousands) Gains on strategic investments, net$437,497 $26,785 NM

Gains on strategic investments, net for the nine months ended October 31, 2025 and October 31, 2024 were primarily driven by changes in the fair value of our privately held securities.

Other Income, NetNine Months Ended October 31,20252024