Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on August 23 in the early morning news, video conferencing software developer Zoom today announced the company's financial results for the second quarter of fiscal year 2023. According to the report, Zoom's total revenue in the second quarter was $1.0995 billion, up 8% from $1.0215 billion in the same period last year; net profit was $45.75 million, compared with $317.1 million in the same period last year; and net profit attributable to the company's common shareholders was $45.75 million, down 86% from $3.169 in the same period last year.

Zoom's second-quarter adjusted earnings per share exceeded Wall Street analysts' expectations, but revenue fell short of expectations, and the company's outlook for revenue and adjusted earnings per share for the third quarter and the full year of fiscal 2023 fell short of expectations, causing its shares to fall sharply by more than 8 per cent in after hours.

Performance Summary:

For the quarter ended July 31, 2022, Zoom's net profit was $45.75 million, compared with $317.1 million in the same period last year; net profit attributable to the company's common shareholders was $45.75 million, down 86% from $316.9 million in the same period last year; and diluted income per share for the company's common shareholders was $0.15, compared with $1.04 a year earlier.

Excluding USAGAs (excluding equity incentive expenses and related payroll taxes, M & A related expenses, strategic investment income, undistributed profits on participating securities, and expenses related to charitable donations of common stock), Zoom's adjusted net profit for the second quarter was $323.5 million, or $1.05 per diluted share, compared with adjusted net profit of $415.1 million for the same period last year. Adjusted diluted earnings of $1.36 per share beat analysts' expectations. Analysts had on average expected Zoom to earn 94 cents a share in the second quarter, according to Refinitiv, a provider of financial market data and infrastructure.

Zoom's second-quarter revenue was $1.0995 billion, up 8% from $1.0215 billion in the same period last year, falling short of analysts' expectations. On average, 22 analysts had expected Zoom's second-quarter revenue to reach $1.12 billion, according to Yahoo Finance.

Zoom's second-quarter revenue cost was $273.6 million, compared with $261.3 million in the same period last year. Zoom's second-quarter gross profit was $825.8 million, compared with $760.2 million in the same period last year.

Zoom's operating expenses were $704.1 million in the second quarter, compared with $465.6 million in the same period last year. Of this total, R & D expenditure was $173 million, compared with $82.3 million in the same period last year; sales and marketing expenditure was $400 million, compared to $271 million in the same period last year; and general and administrative expenses were $131 million, compared with $112 million in the same period last year.

Zoom's second-quarter operating profit was $121.7 million, compared with $294.6 million in the same period last year. Excluding general US accounting principles (excluding equity incentive expenses and related payroll taxes, M & A related expenses, and charitable contributions related to common stock), Zoom's adjusted operating profit for the second quarter was $393.7 million, compared with $424.7 million in the same period last year.

Zoom's operating margin was 11.1% in the second quarter, compared with 28.8% in the same period last year. Excluding general US accounting principles (excluding equity incentive payments and related payroll taxes, M & A-related expenses, and expenses related to charitable donations of common stock), Zoom's adjusted operating profit margin was 35.8 per cent in the second quarter, compared with 41.6 per cent in the same period last year.

Executive comments:

"in the second quarter, we remain the platform of choice for companies looking for flexible and efficient collaboration and customer engagement solutions." Yuan Zheng, founder and chief executive of Zoom, said. "companies are attracted to the Zoom platform because of our innovation and modern architecture. We recently launched Zoom Contact Center and Zoom IQ for Sales products with some good early victories, while Zoom Phone achieved a milestone, with a record number of licenses sold this quarter, nearly 4 million seats, an increase of more than 100 per cent year-on-year."

"in the second quarter, we achieved revenue of more than $1 billion for the fifth quarter in a row. while corporate customers continued to maintain growth momentum, operating profit that did not comply with GAAP was significantly higher than we expected, but revenue was affected by a stronger dollar, online business performance and, to a lesser extent, sales at the end of the quarter." Kelly Steckelberg, chief financial officer of Zoom, said. "as a result, we now expect revenue for fiscal 2013 to be between $4.385 billion and $4.395 billion. We continue to focus on operational discipline and continue to expect operating margins that are not in accordance with US GAAP to be about 33 per cent."

Customer metrics:

The drivers of total revenue include the acquisition of new customers and the expansion of existing customer base. As of the end of the second quarter of fiscal year 2023, Zoom has:

-about 204100 enterprise customers, an increase of 18% over the same period last year

-Corporate customers' net dollar expansion rate of 120% over the past 12 months

-3116 customers have contributed more than $100000 in revenue in the past 12 months, an increase of about 37 per cent over the same period last year. .

Cash related news:

Zoom's net cash from business operations in the second quarter was $257.2 million, compared with $468 million in the same period last year. Zoom's adjusted free cash flow (free cash flow minus the cost of purchasing property and equipment, plus litigation settlement costs) was $222.1 million in the second quarter, compared with $455 million in the same period last year.

As of July 31, 2022, total cash, cash equivalents and marketable securities (excluding restricted cash) held by Zoom were $5.5 billion.

Performance outlook:

Zoom estimates that total net revenue for the third quarter of fiscal year 2023 is expected to reach $1.095 billion to $1.1 billion, falling short of analysts' expectations; operating profit that does not comply with US GAAP is expected to reach $325 million to $330 million Diluted earnings per share, which are not in accordance with GAAP, are expected to be between 82 and 83 cents (the weighted average of outstanding shares is about 306 million shares), which also falls short of analysts' expectations. On average, analysts had expected Zoom to earn 91 cents a share and generate revenue of $1.15 billion in the third quarter, according to Refinitiv.

Zoom also expects total net revenue for fiscal year 2023 to reach $4.385 billion to $4.395 billion, falling short of analysts' expectations; operating profit without GAAP is expected to reach $1.44 billion to $1.45 billion, and diluted earnings per share without GAAP are expected to reach $3.65 to $3.69, which also fails to meet analysts' expectations. Analysts had expected Zoom's adjusted earnings per share to reach $3.76 on average, while 27 analysts had expected Zoom's revenue to reach $4.54 billion on average, according to data provided by Refinitiv.

Stock price response:

On the day, Zoom shares fell $2.06, or 2.07%, to $97.44 in regular Nasdaq trading. Zoom shares fell another $8.26, or 8.48 per cent, to $89.18 in after-hours trading as of 05:39 EDT on Monday (05:39 Beijing time on Tuesday). Over the past 52 weeks, the Zoom has peaked at $357.93 and the lowest at $79.03.

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