Zoom (ZM) investor relations material

Executive summary

• Q1 FY27 revenue grew 5.5% year-over-year to $1.24 billion, surpassing guidance, with enterprise revenue up 7.2% and strong AI-driven product adoption, including AI Companion and Custom AI Companion.

• AI monetization accelerated, with paid AI Companion MAUs up 184% year-over-year and My Notes licensed MAUs surpassing 1.5 million.

• Customer base with over $100K TTM revenue grew 8% to 4,534, now contributing 33% of total revenue.

• Major customer wins included government, healthcare, sports, and global brands, often displacing competitors and consolidating platforms.

• Board authorized an additional $1 billion share repurchase, reflecting confidence in long-term growth.

Financial highlights

• Total revenue: $1.24 billion, up 5.5% year-over-year; enterprise revenue: 7.2% growth, now 61% of total revenue.

• Non-GAAP gross margin: 79.9%, up 70 bps year-over-year; GAAP gross margin: 77.9%.

• Non-GAAP operating income: $509 million, up 9% year-over-year; non-GAAP operating margin: 41.1%.

• Non-GAAP EPS: $1.55, up from $1.43 year-over-year; GAAP EPS: $1.42, up from $0.81.

• Free cash flow: $500.5 million, up 8% year-over-year; margin 40.4%.

• Deferred revenue: $1.49 billion, up 5% year-over-year; RPO: $4.3 billion, up 11%.

Outlook and guidance

• Q2 FY27 revenue guidance: $1.265–$1.27 billion; non-GAAP operating income: $508–$513 million; EPS: $1.45–$1.47.

• FY27 revenue guidance raised to $5.08–$5.09 billion; non-GAAP operating income: $2.065–$2.075 billion; EPS: $5.96–$6.00.

• FY27 free cash flow expected at $1.7–$1.74 billion.