Zoom Video Communications, Inc. (NASDAQ: ZM), a leading provider of video-first unified communications, today announced financial results for the fourth quarter and fiscal year ended January 31, 2023.
“In fiscal year 2023, our growing base of Enterprise customers increasingly looked to Zoom to provide a seamless communication and collaboration platform, and drive productivity and efficiency during turbulent times,” said Zoom founder and CEO, Eric S. Yuan. “This was evident in the 27% growth in customers contributing more than $100,000 in trailing 12 months revenue, as well as the 115% trailing 12-month net dollar expansion rate for Enterprise customers. Zoom One adoption continued to accelerate and helped drive Zoom Phone to grow more than 100% year over year, surpassing 5.5 million seats in Q4. Our emerging technologies such as Zoom Contact Center picked up pace as customer experience teams recognized the value of a modern, integrated collaboration solution. While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion.”
Fourth Quarter Fiscal Year 2023 Financial Highlights:
- Revenue: Total revenue for the fourth quarter was $1,117.8 million, up 4% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,140.2 million, up 6% year over year. Enterprise revenue was $636.1 million, up 18% year over year, and Online revenue was $481.7 million, down 10% year over year.
- (Loss) Income from Operations and Operating Margin: GAAP (loss) from operations for the fourth quarter was $(129.9) million, compared to GAAP income from operations of $251.8 million in the fourth quarter of fiscal year 2022. The GAAP loss from operations for the fourth quarter was due to additional stock-based compensation expense related to a change to our supplemental equity grant program. After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from operations for the fourth quarter was $404.8 million, down from $420.3 million in the fourth quarter of fiscal year 2022. For the fourth quarter, GAAP operating margin was (11.6)% and non-GAAP operating margin was 36.2%.
- Net (Loss) Income and Diluted Net (Loss) Income Per Share: GAAP net (loss) attributable to common stockholders for the fourth quarter was $(104.1) million, or $(0.36) per share, compared to GAAP net income attributable to common stockholders of $490.5 million, or $1.60 per share in the fourth quarter of fiscal year 2022.
Non-GAAP net income for the fourth quarter was $366.6 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, gains on strategic investments, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $1.22. In the fourth quarter of fiscal year 2022, non-GAAP net income was $393.6 million, or $1.29 per share.
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