Fri, Aug 23, 8:03 PM (144 days ago)
For the quarter ending July 31, 2024, Zoom Video Communications reported revenues of $1,162.5 million, a 2.1% increase from $1,138.7 million in Q2 2023. Net income rose to $219.0 million compared to $182.0 million in the prior year. The six-month revenue also grew by 2.7% year-over-year to $2,303.8 million. Operating cash flow increased significantly to $1,037.5 million, up from $754.5 million in the prior year, highlighting improved cash generation. However, gross margins decreased to 75.5% from 76.6% due to rising hosting costs associated with AI functionalities. Operating expenses fell overall, with significant reductions in sales and marketing and general administrative costs. The company’s strategic investments showed a notable decline in gains, down 90.2% year-over-year. Zoom faces uncertainties from macroeconomic conditions, elongated sales cycles, and increased competition, particularly in the enterprise segment. Future growth may be impacted by customer retention challenges and evolving regulatory landscapes. The company continues to invest in AI and expand its international presence, although it must navigate complex compliance requirements across jurisdictions.