Zoom Communications, the AI-first work platform for human connection, has announced financial results for the fourth quarter and fiscal year ended January 31st 2025.

“In FY25, Zoom AI Companion emerged as the driving force behind our transformation into an AI-first company, enabling our customers to discover enhanced productivity opportunities. As Zoom AI Companion becomes increasingly agentic, we look forward to continuing to help our customers fully realise the benefits of AI and discover what’s possible with AI agents,” said Eric S. Yuan, Zoom’s founder and CEO. “Both Contact Center and Workvivo had incredible years capped by excellent Q4s in terms of strategic logo wins, upmarket momentum and broader customer growth. As we rapidly innovated for our customers, we delivered a robust 5.8-point expansion in FY25 GAAP operating margin driven by increased focus on prioritising investments and controlling share-based compensation, and grew FY25 operating cash flow 21.7 per cent year over year to nearly $2 billion [€1.91bn], representing an operating cash flow margin of 41.7 per cent.”

Total revenue for the fourth quarter was $1.18 billion, up 3.3 per cent year over year. After adjusting for foreign currency impact, revenue in constant currency was $1.18 million, up 3.6 per cent year over year. Enterprise revenue was $706.8 million, up 5.9 per cent year over year, and Online revenue was $477.3 million, down 0.4 per cent year over year.

Total revenue for the fiscal year was $4.66 billion, up 3.1 per cent year over year. After adjusting for foreign currency impact, revenue in constant currency was $4.67 billion, up 3.3 per cent year over year. Enterprise revenue was $2.75 billion, up 5.2 per cent year over year, and Online revenue was $1.91 billion, up 0.2 per cent year over year.

Drivers of revenue included acquiring new customers and expanding across existing customers. At the end of the fourth quarter of fiscal year 2025, Zoom had:

• Approximately 192,600 Enterprise customers.
• A trailing 12-month net dollar expansion rate for Enterprise customers of 98 per cent.
• 4,088 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 7.3 per cent from the same quarter last fiscal year.
• Online average monthly churn of 2.8 per cent for the fourth quarter, down 20 bps from the same quarter last fiscal year.
• At the end of the fourth quarter, the percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 75.1 per cent, up 90 bps year over year.

The company added: “As Zoom continues to expand and evolve, we have seen an increasing overlap between our Enterprise and Online customer categories. Over time, customers with lower MRR are expected to move from Enterprise to Online as we optimise our sales strategies. While these moves do not have a material impact on other customer metrics, the number of customers between these two groups has become less meaningful as a customer metric. Therefore, beginning in the first quarter of fiscal year 2026, we will no longer report the number of Enterprise customers as a customer metric. However, we will continue to provide this metric in the appendix of our investor deck through the end of fiscal year 2026, which will be accessible on our investor relations website.”

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Categories: Articles, Business, Results

Tags: AI, Zoom