Wed, May 22, 8:03 PM (65 days ago)
Zoom Video Communications, Inc. reported a revenue increase of 3.2% to $1,141.2 million for the quarter ended April 30, 2024, compared to $1,105.4 million in the same period in 2023. The growth was driven by a 5.3% increase in revenue from Enterprise customers. However, the net dollar expansion rate for Enterprise customers decreased to 99% from 112% year-over-year. Net income surged to $216.3 million from $15.4 million, primarily due to reduced operating expenses and higher gains on strategic investments and other income. Operating expenses fell by 20% to $664.9 million, driven by lower sales and marketing expenses and general and administrative costs. Free cash flow increased to $569.7 million from $396.7 million, reflecting higher operating cash flow and lower capital expenditures. Despite the positive results, the company faces challenges such as fluctuating revenue growth rates, competitive pressures, and macroeconomic uncertainties. The ongoing geopolitical tensions and regulatory scrutiny, particularly related to operations in China, remain significant risks. The company’s stock repurchase program authorized up to $1.5 billion, with $1.35 billion remaining as of April 30, 2024.