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

Beijing time on November 22 morning news, video conferencing software developer Zoom today announced the company's fiscal year 2023 third quarter results. According to the report, Zoom's total revenue in the third quarter was $1.1019 billion, up 5% from $1.0508 billion in the same period last year; revenue excluding exchange rate changes was $1.1261 billion; up 7% over the same period last year; and net profit belonging to the company's common shareholders was $48.4 million, down 86% from $340.3 million in the same period last year Adjusted net profit, not in accordance with GAAP, was $323.2 million, compared with $338.4 million in the same period last year.

Zoom's third-quarter revenue and adjusted diluted net income per share both beat Wall Street analysts' expectations, but the outlook for adjusted diluted net income per share in the fourth quarter fell short of expectations, causing its shares to fall nearly 4 per cent in after-hours trading.

Summary of results: for the quarter ended October 31, 2022, Zoom's net profit attributable to the company's common shareholders was $48.4 million, down 86% from $340.3 million in the same period last year, and diluted net profit per share for the company's common shareholders was $0.16, compared with $1.11 in the same period last year.

Excluding GAAP (excluding equity incentive expenses and related payroll taxes, net profit and loss from strategic investments, M & A related expenses, undistributed earnings on participating securities, and tax impact of non-GAAP adjustments), Zoom's adjusted net profit for the third quarter was $323.2 million, or $1.07 per share, compared with adjusted net profit of $338.4 million for the same period last year. Net income per share was $1.11, beating analysts' expectations. On average, 28 analysts had expected Zoom to earn 84 cents a share in the third quarter, according to data provided by Yahoo Finance.

Zoom's total revenue in the third quarter was $1.1019 billion, up 5% from $1.0508 billion in the same period last year. Excluding currency changes, Zoom's total revenue in the third quarter was $1.1261 billion, up 7% from the same period last year and exceeding analysts' expectations. On average, 24 analysts had expected Zoom's third-quarter revenue to reach $1.1 billion, according to Yahoo Finance.

Zoom's third-quarter revenue cost was $270.7 million, compared with $271 million in the same period last year. Zoom's third-quarter gross profit was $831.2 million, compared with $779.8 million in the same period last year.

Zoom's total operating expenses in the third quarter were $764.7 million, compared with $488.9 million in the same period last year. Of this total, R & D expenditure was $195.9 million, compared with $98.5 million in the same period last year; sales and marketing expenditure was $427.7 million, compared to $293.7 million in the same period last year; and general and administrative expenses were $141 million, compared with $9670 in the same period last year.

Zoom's third-quarter operating profit was $66.5 million, compared with $290.9 million in the same period last year. Excluding US GAAP (excluding equity incentive expenses and related payroll taxes and M & A related expenses), Zoom's adjusted operating profit in the third quarter was $380.9 million, compared with $411.3 million in the same period last year.

Zoom's operating margin was 6.0% in the third quarter. Zoom's adjusted operating margin for the third quarter was 34.6 per cent, not in accordance with GAAP (excluding equity incentive expenses and related payroll taxes, as well as M & A related expenses).

Customer indicators: the drivers of total revenue include the acquisition of new customers and the expansion of existing customer base. As of the end of the third quarter of fiscal year 2023, Zoom had:

-about 209300 enterprise customers, an increase of 14% compared to the same period in the previous fiscal year

-the net dollar expansion rate of corporate customers over the past 12 months was 117%

-3286 customers contributed more than $100000 in revenue in the past 12 months, an increase of about 31 per cent compared to the same period in the previous fiscal year

-the total number of customers with more than 10 employees was about 512100, an increase of about 18% compared with the same period in the previous fiscal year.

-the monthly online turnover rate in the third quarter was 3.1%, a decrease of 60 basis points compared with the same period in the previous fiscal year.

Cash-related news: Zoom's net cash from business operations in the third quarter was $295.3 million, compared with $394.6 million in the same period last year. Zoom's free cash flow (calculated as net cash from business operations minus expenses on property and equipment purchases) was $272.6 million in the third quarter, compared with $374.8 million in the same period last year.

As of October 31, 2022, the total cash, cash equivalents and marketable securities held by Zoom (excluding restricted cash) was $5.2 billion.

Performance outlook: fourth quarter performance outlook:

Zoom estimates that total net revenue for the fourth quarter of fiscal 2023 is expected to be between $1.095 billion and $1.105 billion, and between $1.12 billion and $1.13 billion, excluding currency changes, and the average outlook ($1.125 billion) exceeds analysts' expectations. On average, 24 analysts had expected Zoom's fourth-quarter revenue to reach $1.12 billion, according to Yahoo Finance.

Zoom also estimates that operating profit without GAAP for the fourth quarter of fiscal 2023 is expected to be between $316 million and $326 million, and diluted earnings per share without GAAP are expected to be between 75 and 78 cents per share, which falls short of analysts' expectations. On average, 28 analysts had expected Zoom's fourth-quarter earnings per share to reach $0.80, according to Yahoo Finance.

Performance outlook for fiscal year 2023:

Zoom estimates that total net revenue for fiscal 2023 is expected to be between $4.37 billion and $4.38 billion, and between $4.442 billion and $4.452 billion excluding currency changes, a performance outlook that exceeds analysts' expectations. On average, 31 analysts had expected Zoom's full-year revenue to reach $4.4 billion, according to Yahoo Finance.

Zoom also expects operating profit not in accordance with GAAP to reach between $1.49 billion and $1.5 billion in fiscal 2023, and diluted earnings per share that do not comply with GAAP will reach between $3.91 and $3.94, a performance outlook that also exceeds analysts' expectations. On average, 30 analysts had expected Zoom to earn $3.70 per share for the full year, according to data provided by Yahoo Finance.

Share price reaction: Zoom shares fell $1.38, or 1.69%, to close at $80.26 in regular Nasdaq trading. Zoom shares fell another $3.05, or 3.80 per cent, to $77.21 in after-hours trading as of 04:44 est on Monday (05:44 on Tuesday, Beijing time). In the past 52 weeks, the highest price for Zoom is $251.70 and the lowest price is $70.43.

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