Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 318

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 8
Chunk 318
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, or 4.0%, compared to the nine months ended October 31, 2024. The increase in revenue was due to a 6.3% growth in revenue from Enterprise customers, of which 47.0% and 53.0% was from new and existing customers, respectively. Revenue from Online customers remained relatively flat year over year.

Cost of RevenueNine Months Ended October 31,20252024% Change(in thousands)Cost of revenue$823,337 $842,272 (2.2)%Gross profit$2,798,440 $2,639,023 6.0 %Gross margin77.3 %75.8 %

Cost of revenue for the nine months ended October 31, 2025 decreased by $18.9 million, or 2.2%, compared to the nine months ended October 31, 2024. The decrease was primarily due to a $18.5 million reduction in stock-based compensation due to changes in our equity program.

Gross margin increased to 77.3% for the nine months ended October 31, 2025 from 75.8% for the nine months ended October 31, 2024, mainly due to a decrease in stock-based compensation.

Operating Expenses

Research and DevelopmentNine Months Ended October 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