Company: ZM
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001585521-25-000202
Chunk: 294

Company: Zoom Communications, Inc.
Filing Date: 2025-11-25
Form: 10-Q
Item: Part I, Item 8
Chunk 294
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 quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded. We classify our privately held debt securities as Level 3 due to the lack of relevant observable market data over fair value inputs, such as the probability weighting of the various scenarios that can impact settlement of the arrangement.

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5.    Balance Sheet Components

Accounts Receivable, NetAccounts receivable are recorded for invoiced amounts and amounts for which revenue has been recognized, but not invoiced, net of allowances. Our short-term accounts receivable consist of the following:As ofOctober 31, 2025January 31, 2025(in thousands)Accounts receivable, gross$435,821 $517,306 Less: allowance for credit losses(14,159)(17,262)Less: allowance for returns(3,969)(4,816)Accounts receivable, net$417,693 $495,228 Below is a rollforward of our allowance for credit losses for the nine months ended October 31, 2025 and 2024:20252024 (in thousands)Balance as of January 31$17,262 $25,916 Provision for credit losses12,119 19,505 Write-offs(15,222)(25,250)Balance as of October 31$14,159 $20,171 Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consisted of the following:As ofOctober 31, 2025January 31, 2025(in thousands)Prepaid expenses$154,877 $166,924 Restricted cash11,711 12,037 Other12,334 21,718 Prepaid expenses and other current assets$178,922 $200,679 

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Property and Equipment, NetProperty and equipment consisted of the following:As ofOctober 31, 2025January 31, 2025(in thousands)Servers$406,523 $427,664 Software148,035 123,259 Computer and office equipment46,233 47,021 Leasehold improvements57,591 54,885 Furniture and fixtures 5,737 5,767 Property and equipment, gross664,119 658,596 Less: accumulated depreciation and amortization(379,268)(328,121)Property and equipment, net$284,851