Company: ZM
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001585521-25-000141
Chunk: 277

Company: Zoom Communications, Inc.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 277
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17.9 Sales and marketing27.8 30.9 28.7 30.7 General and administrative6.4 9.4 7.4 9.6 Total operating expenses51.2 58.1 53.3 58.2 Income from operations26.4 17.4 23.6 17.6 Gains on strategic investments, net3.7 0.3 1.3 0.9 Other income, net6.7 7.5 7.1 6.9 Income before provision for income taxes36.9 25.2 31.9 25.4 Provision for income taxes7.4 6.4 6.3 6.5 Net income29.5 %18.8 %25.6 %18.9 %

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Comparison of the Three Months Ended July 31, 2025 and 2024 

RevenueThree Months Ended July 31, 20252024% Change(in thousands) Revenue$1,217,227 $1,162,520 4.7 %

Revenue for the three months ended July 31, 2025 increased by $54.7 million, or 4.7%, compared to the three months ended July 31, 2024. The increase was driven by 7.0% growth in revenue from Enterprise customers, of which 57.4% and 42.6% was from new and existing customers, respectively, and by a 1.4% increase in revenue from Online customers.

Cost of RevenueThree Months Ended July 31, 20252024% Change(in thousands)Cost of revenue$273,165 $285,089 (4.2)%Gross profit944,062 877,431 7.6 %Gross margin77.6 %75.5 %

Cost of revenue for the three months ended July 31, 2025 decreased by $11.9 million, or 4.2%, compared to the three months ended July 31, 2024. The decline was mainly due to a $7.1 million reduction in stock-based compensation as well as lower hosting costs. The reduction in SBC is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Gross margin grew to