February 27, 2024 (Globalinvestorideas.com Newswire) Tech Stock News Bite – Zoom Video Communications, Inc. (NASDAQ: ZM), a platform delivering limitless human connection, announced financial results for the fourth quarter and fiscal year ended January 31, 2024.
“In FY24, we unveiled Zoom AI Companion, our generative AI digital assistant, aimed at boosting productivity, enhancing team effectiveness, and fostering skill development across the Zoom platform. We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license,” stated Eric S. Yuan, Zoom’s founder and CEO. “Our team is dedicated to platform-wide innovation, introducing hundreds of new features, including those for Zoom Contact Center, which redefine the gold standard for customer experience. While delivering innovation for our customers, we also drove robust profitability and grew free cash flow, up 24.1% year over year to $1,471.9 million for the full fiscal year, representing a free cash flow margin of 32.5%.”
Fourth Quarter Fiscal Year 2024 Financial Highlights:
Revenue: Total revenue for the fourth quarter was $1,146.5 million, up 2.6% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,147.9 million, up 2.7% year over year. Enterprise revenue was $667.3 million, up 4.9% year over year, and Online revenue was $479.2 million, down 0.5% year over year.
Income (Loss) from Operations and Operating Margin: GAAP income from operations for the fourth quarter was $168.5 million, compared to GAAP (loss) from operations of $(129.9) million in the fourth quarter of fiscal year 2023. After adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, acquisition-related expenses, and restructuring expenses, non-GAAP income from operations for the fourth quarter was $443.7 million, compared to non-GAAP income from operations of $404.8 million in the fourth quarter of fiscal year 2023. For the fourth quarter, GAAP operating margin was 14.7% and non-GAAP operating margin was 38.7%.
Net Income (Loss) and Diluted Net Income (Loss) Per Share: GAAP net income attributable to common stockholders for the fourth quarter was $298.8 million, or $0.95 per share, compared to GAAP net (loss) attributable to common stockholders of $(104.1) million, or $(0.36) per share in the fourth quarter of fiscal year 2023.
Non-GAAP net income for the fourth quarter was $444.0 million, after adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, (gains) losses on strategic investments, net, acquisition-related expenses, restructuring expenses, income tax benefits from discrete activities, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.42. In the fourth quarter of fiscal year 2023, non-GAAP net income was $366.6 million, or $1.22 per share.
Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of January 31, 2024 was $7.0 billion.
Cash Flow: Net cash provided by operating activities was $351.2 million for the fourth quarter, compared to $211.6 million in the fourth quarter of fiscal year 2023, up 66.0% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $332.7 million, compared to $183.3 million in the fourth quarter of fiscal year 2023, up 81.5% year over year.
Full Fiscal Year 2024 Financial Highlights:
Revenue: Total revenue for the fiscal year was $4,527.2 million, up 3.1% year over year. After adjusting for foreign currency impact, revenue in constant currency was $4,561.3 million, up 3.8% year over year. Enterprise revenue was $2,619.3 million, up 8.7% year over year, and Online revenue was $1,907.9 million, down 3.8% year over year.
Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $525.3 million, compared to GAAP income from operations of $245.4 million for fiscal year 2023. After adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, acquisition-related expenses, and restructuring expenses, non-GAAP income from operations for the fiscal year was $1,774.9 million, compared to non-GAAP income from operations of $1,579.1 million for fiscal year 2023. For the fiscal year, GAAP operating margin was 11.6% and non-GAAP operating margin was 39.2%.
Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the fiscal year was $637.5 million, or $2.07 per share, compared to GAAP net income attributable to common stockholders of $103.7 million, or $0.34 per share for fiscal year 2023.
Non-GAAP net income for the fiscal year was $1,608.0 million, after adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, (gains) losses on strategic investments, net, acquisition-related expenses, restructuring expenses, income tax benefits from discrete activities, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $5.21. In fiscal year 2023, non-GAAP net income was $1,329.0 million, or $4.37 per share.
Cash Flow: Net cash provided by operating activities was $1,598.8 million for the fiscal year, compared to $1,290.3 million for fiscal year 2023 up 23.9% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $1,471.9 million, compared to $1,186.4 million for fiscal year 2023 up 24.1% year over year.
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