Zoom Video

Communications

Q4 FY23 Earnings

February 27, 2023

© 2023 Zoom Video Communications, Inc.

Use of
In addition to the financials presented in accordance with U.S. generally accepted
accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics:
Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP
non-GAAP R&D expense, non-GAAP S&M expense, non-GAAP G&A expense, non-GAAP operating
margin, non-GAAP operating income, non-GAAP EPS, Free Cash Flow and Free Cash Flow
financial margin. Non-GAAP metrics have limitations as analytical tools and you should not consider
them in isolation or as a substitute for or superior to the most directly comparable financial
measures measures prepared in accordance with U.S. GAAP. There are a number of limitations
related to the use of non-GAAP metrics versus their nearest GAAP equivalents. Other
companies, including companies in our industry, may calculate non-GAAP metrics
differently or may use other measures to evaluate their performance, all of which could
reduce the usefulness of our non-GAAP metrics as tools for comparison. We urge you to
review the reconciliation of Zoom's non-GAAP metrics to the most directly comparable
GAAP financial measures, and not to rely on any single financial measure to evaluate our
business. See the Appendix for reconciliation between each non-GAAP metric and the
most comparable GAAP measure.

© 2023 Zoom Video Communications, Inc. 2

Safe Harbor This presentation and the accompanying oral presentation contain express and implied “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the first
quarter and full fiscal year 2024; Zoom's expectations regarding financial and business trends, as well as impacts from macroeconomic

Statement developments; Zoom's market position, opportunities, growth strategy and business aspirations; and product initiatives and the
expected benefits of such initiatives. In some cases, you can identify forward-looking statements by terms such as “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,”
“target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements.
By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could
cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the
statements, including: declines in new customers and hosts, renewals or upgrades, difficulties in evaluating our prospects and future
results of operations given our limited operating history, competition from other providers of communications platforms, continued
uncertainty regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry
thereto, including the potential effect on our user growth rate as the impact of the COVID-19 pandemic tapers, particularly as users
return to work or school or are otherwise no longer subject to limitations on in-person meetings, as well as the impact of COVID-19 and
other macroeconomic conditions, including inflation, on the overall economic environment, any or all of which will have an impact on
demand for remote work solutions for businesses as well as overall distributed, face-to-face interactions and collaboration using Zoom,
delays or outages in services from our co-located data centers, failures in internet infrastructure or interference with broadband
access, which could cause current or potential users to believe that our systems are unreliable, market volatility, and global security
concerns and their potential impact on regional and global economies and supply chains.

Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the
forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities
and Exchange Commission (the “SEC”), including our quarterly report on Form 10-Q for the fiscal quarter ended October 31, 2022.
Forward-looking statements speak only as of the date the statements are made and are based on information available to Zoom at the
time those statements are made and/or management's good faith belief as of that time with respect to future events. Zoom assumes
no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as
required by law.

© 2023 Zoom Video Communications, Inc. 3

 FY23 was a year of prolific innovation

FEBRUARY APRIL APRIL JUNE NOVEMBER JANUARY

Contact Center Zoom IQ for Sales Whiteboard Zoom One Mail & Calendar Virtual Agent

CONFIDENTIAL © 2023 Zoom Video Communications, Inc. 4

 Zoom’s FY24 Strategic Focuses

Redefine Teamwork Empower Smarter Add Value Beyond IT

Experiences & Workflows
Collaboration and productivity Departmental and industry use cases
Artificial intelligence

© 2023 Zoom Video Communications, Inc. 5

 Employees and
Customers
Seamless
connection via Audiences

our collaboration
Artificial Intelligence
platform
Departmental and
Industry Solutions
Building an easier, more intelligent,
and dynamic collaboration platform
that unites people to unlock their Platform
potential

© 2023 Zoom Video Communications, Inc. 6

Customer wins highlight the power of the platform

© 2023 Zoom Video Communications, Inc.

 Strong FY23 Performance

24% 35.9% 27.0%

Enterprise Revenue growth Non-GAAP operating margin1 Free cash flow margin1

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 8
Continued top-line expansion in Q4 with positive trends
in Enterprise and Online
Total Revenue1 Enterprise Revenue Online Average
(in millions) (in millions) Monthly Churn2

Currency
Impact
18%
6%

4%

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 9
Strong growth with new and existing Enterprise customers
# of Enterprise # of Customers Contributing
Customers1 >$100k in TTM Revenue

12%
27%
TTM Net Dollar
Expansion Rate
for Enterprise
Customers2

115%
in Q4 FY23

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 10
Double-Digit Americas growth, macro headwinds in ROW
Revenue1 YoY Growth Revenue Share by
(in millions) Region1

APAC
-5%

EMEA
-9%

Americas
10%

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 11
Q4 FY23 expenses and margins

GAAP1 Non-GAAP2
Results Yr/Yr Results Yr/Yr
As a % of Revenue Revenue $1,118 million 4% $1,118 million 4%
Gross Profit 73.7% (231 bps) 79.8% +152 bps
R&D Expense 23.4% +1,245 bps 9.2% +247 bps
S&M Expense 45.2% +1,486 bps 26.9% +350 bps
G&A Expense 16.7% +550 bps 7.5% (135 bps)
Operating Profit (11.6%) (3,512 bps) 36.2% (301 bps)
Effective Tax Rate (163.1%) +9,104 bps 19.4% +1,361 bps
EPS - Diluted ($0.36) n/a $1.22 (5%)

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 12
Growing future revenue under contract

Total RPO1 Current2 & Non-Current

(in millions) YoY Growth RPO YoY Growth
(in millions)
Total Total
30% 44%
30%

Unbilled Non-Current
45% 53%
38%

56%

63%

Deferred Revenue Current

11% 16%

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 13
Strong cash flow and position in Q4

FY23 Cash Balance Bridge1

(in millions)

Operating Cash Flow $212M

OCF Margin 18.9%

Free Cash Flow $183M

FCF Margin2 16.4%

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 14
Q1 and Fiscal Year 2024 outlook

Q1 FY24 FY24

Revenue $1,080 - $1,085 million $4,435 - $4,455 million

Total Revenue
$1,097 - $1,102 million $4,458 - $4,478 million
(Constant Currency)

Non-GAAP Operating
Outlook1 $374 - $379 million $1,606 - $1,626 million
Income

Weighted Average Share

304 million 309 million
Count

Non-GAAP EPS $0.96 - $0.98 $4.11 - $4.18

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 15
© 2023 Zoom Video Communications, Inc.
© 2023 Zoom Video Communications, Inc. 17
Thank you

© 2023 Zoom Video Communications, Inc. 18

Appendix

© 2023 Zoom Video Communications, Inc. 19

GAAP to Non-GAAP Reconciliation

($ in Thousands) Q4 FY22 Q4 FY23 FY22 FY23

Gross Profit
Total Revenue $1,071,376 $1,117,803 $4,099,864 $4,392,960
GAAP Gross Profit $814,029 $823,449 $3,045,310 $3,292,509
(+) Stock-based compensation expense and related payroll taxes $23,890 $65,308 $73,863 $177,330
(+) Acquisition-related expense $698 $3,189 $2,786 $10,208
Non-GAAP Gross Profit $838,617 $891,946 $3,121,959 $3,480,047
GAAP Gross Margin 76.0% 73.7% 74.3% 74.9%
Non-GAAP Gross Margin 78.3% 79.8% 76.1% 79.2%

R&D Expenses
GAAP R&D $116,996 $261,258 $362,990 $774,059
(-) Stock-based compensation expense and related payroll taxes $(41,667) $(153,697) $(115,101) $(363,999)
(-) Acquisition-related expense $(3,069) $(4,538) $(12,508) $(16,512)
Non-GAAP R&D $72,260 $103,023 $235,381 $393,548

S&M Expenses
GAAP S&M $325,415 $505,586 $1,135,959 $1,696,590
(-) Stock-based compensation expense and related payroll taxes $(74,217) $(204,352) $(245,433) $(540,082)
(-) Acquisition-related expense - $(1,014) - $(2,848)
Non-GAAP S&M $251,198 $300,220 $890,526 $1,153,660

G&A Expenses
GAAP G&A $119,799 $186,492 $482,770 $576,431
(-) Stock-based compensation expense and related payroll taxes $(24,737) $(97,594) $(69,939) $(220,252)
(-) Litigation settlements, net - - $(66,916) $4,226
(-) Acquisition-related expense $(193) $(5,027) $(6,983) $(6,650)
Non-GAAP G&A $94,869 $83,871 $338,932 $353,755

© 2023 Zoom Video Communications, Inc. 20

GAAP to Non-GAAP Reconciliation
($ in Thousands except EPS) Q4 FY22 Q4 FY23 FY22 FY23

Operating Profit
Total Revenue $1,071,376 $1,117,803 $4,099,864 $4,392,960
GAAP Operating Profit $251,819 $(129,887) $1,063,591 $245,429
(+) Stock-based compensation expense and related payroll taxes $164,511 $520,951 $504,336 $1,301,663
(+) Litigation settlements, net - - $66,916 $(4,226)
(+) Acquisition-related expenses $3,960 $13,768 $22,277 $36,218
Non-GAAP Operating Profit $420,290 $404,832 $1,657,120 $1,579,084
GAAP Operating Margin 23.5% (11.6%) 25.9% 5.6%
Non-GAAP Operating Margin 39.2% 36.2% 40.4% 35.9%

Net Income
GAAP net income attributable to common stockholders $490,525 $(104,050) $1,375,057 $103,704
(+) Stock-based compensation expense and related payroll taxes $164,511 $520,951 $504,336 $1,301,663
(+) Litigation settlements, net - - $66,916 $(4,226)
(+) Losses (gains) on strategic investments $110,736 $(40,443) $(43,761) $37,571
(+) Acquisition-related expenses $3,960 $13,768 $22,277 $36,218
(-) Income tax benefit from discrete activities $(376,266) - $(376,266) -
(+) Undistributed earnings attributable to participating securities $116 - $582 $7
(-) Tax effects on non-GAAP adjustments - $(23,672) - $(145,926)
Non-GAAP net income $393,582 $366,554 $1,549,141 $1,329,011

Earnings Per Share

GAAP net income per share –diluted $1.60 ($0.36) $4.50 $0.34
Non-GAAP net income per share –diluted $1.29 $1.22 $5.07 $4.37

Weighted Average Shares

GAAP weighted-average –diluted 306,010,113 292,983,772 305,826,505 304,231,350
Non-GAAP weighted-average –diluted 306,010,113 301,143,279 305,826,505 304,231,350
© 2023 Zoom Video Communications, Inc. 21
 GAAP to Non-GAAP Reconciliation

($ in Thousands) Q4 FY22 Q4 FY23 FY22 FY23

Free Cash Flow

Cash Flow from Operations $209,396 $211,588 $1,605,266 $1,290,262
(-) Purchases of PPE $(20,774) $(28,258) $(132,590) $(103,826)
Free Cash Flow $188,622 $183,330 $1,472,676 $1,186,436
Operating Cash Flow Margin 19.5% 18.9% 39.2% 29.4%
Free Cash Flow Margin 17.6% 16.4% 35.9% 27.0%
Net Cash Used in Investing Activities $(491,999) $(257,709) $(2,859,097) $(318,322)
Net Cash Provided by (Used in) Financing Activities $13,183 $11,745 $34,068 $(936,942)

($ in Thousands) Q4 FY23 Y/Y growth FY23 Y/Y growth

Revenue in Constant Currency

GAAP revenue $1,117,803 4% $4,392,960 7%
(+) Constant currency impact $22,398 2% $69,075 2%
Revenue in constant currency (non-GAAP) $1,140,201 6% $4,462,035 9%

© 2023 Zoom Video Communications, Inc. 22

Historic Metrics
($ in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23
Revenue $956.2 $1,021.5 $1,050.8 $1,071.4 $1,073.8 $1,099.5 $1,101.9 $1,117.8
Y/Y growth 191% 54% 35% 21% 12% 8% 5% 4%
GAAP Operating Income $226.3 $294.6 $290.9 $251.8 $187.1 $121.7 $66.5 $(129.9)
Stock-based compensation, related payroll taxes, charitable donation of
common stock, acquisition-related expenses, and net litigation settlements $174.6 $130.1 $120.4 $168.5 $212.6 $272.0 $314.4 $534.7
Non-GAAP Operating Income $400.9 $424.7 $411.3 $420.3 $399.6 $393.7 $380.9 $404.8
Operating Cash Flow $533.3 $468.0 $394.6 $209.4 $526.2 $257.2 $295.3 $211.6
Capital Expenditures $(79.1) $(13.0) $(19.8) $(20.8) $(25.0) $(27.8) $(22.7) $(28.3)
Free Cash Flow $454.2 $455.0 $374.8 $188.6 $501.1 $229.4 $272.6 $183.3
RPO $2,073.4 $2,346.3 $2,456.5 $2,647.6 $2,990.0 $3,213.0 $3,245.9 $3,434.5
Y/Y growth 94% 66% 51% 51% 44% 37% 32% 30%
Customers >$100K TTM Revenue 1,999 2,278 2,507 2,725 2,916 3,116 3,286 3,471
Y/Y growth 160% 131% 94% 66% 46% 37% 31% 27%
Revenue % from Customers >$100K TTM Revenue 19% 20% 22% 23% 24% 26% 27% 28%
Enterprise Customers1 160,300 173,000 183,700 191,000 198,900 204,100 209,300 213,000
Y/Y growth 109% 73% 50% 35% 24% 18% 14% 12%
Revenue % from Enterprise Customers 45% 46% 49% 50% 52% 54% 56% 57%
TTM Net $ Expansion Rate for Enterprise Customers 153% 147% 139% 130% 123% 120% 117% 115%
Online Average Monthly Churn 3.7% 4.3% 3.7% 3.8% 3.6% 3.6% 3.1% 3.4%
Previous Metrics
Customers >10 Employees1 497,000 504,900 512,100 509,800 502,400 492,500 488,000 478,500
Revenue % from Customers >10 Employees 63% 64% 66% 67% 68% 69% 70% 70%
TTM Net $ Expansion Rate for Customers >10 employees > 130% > 130% > 130% 129% 119% 115% 112% 109%

For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 23
Endnotes

Slide 8 Slide 12
1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. 1. The GAAP results include an unrecognized stock-based compensation cost related to the sunsetting
of our supplemental grant program of $207.7 million, which both carries no dilutive impact nor tax
Slide 9 benefit.
1. Not drawn to scale. 2. See appendix for a reconciliation of non-GAAP to GAAP financial measures.
2. Zoom calculates online average monthly churn by starting with the Online customer MRR as of the
beginning of the applicable quarter (“Entry MRR”). Entry MRR is defined as the recurring revenue Slide 13
run-rate of subscription agreements from all Online customers, including revenue from monthly 1. Remaining performance Obligations (RPO) consists of both billed considerations and unbilled
subscribers that have not provided any indication that they intend to cancel their subscriptions. considerations that we expect to recognize as revenue. Subtotals have been rounded.
Zoom then determines the MRR related to customers who canceled or downgraded their subscription 2. Current RPO refers to the portion of total RPO which we expect to recognize as revenue over the
during the applicable quarter (“Applicable Quarter MRR Churn”). Zoom divides the Applicable Quarter following 12 months period.
MRR Churn by the applicable quarter Entry MRR to arrive at the MRR Churn rate for Online Customers
for the applicable quarter. Zoom then divides that amount by three to calculate the online average Slide 14
monthly churn. 1. Cash balance refers to cash, cash equivalents and marketable securities, excluding restricted cash at
the end of the period.
Slide 10 2. See appendix for a reconciliation of non-GAAP to GAAP financial measures. Zoom defines free cash
1. The number of customers is rounded down to the nearest hundred. Enterprise Customers refers to flow as net cash provided by operating activities less purchases of property and equipment.
customers who have been engaged by Zoom’s direct sales team, channel partners, or independent
software vendor (ISV) partners. All other customers are referred to as Online Customers. Slide 15
2. We calculate net dollar expansion rate as of a period end by starting with the annual recurring 1. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available
revenue (ARR) from Enterprise customers as of 12 months prior (Prior Period ARR). We define ARR as on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may
the annualized revenue run rate of subscription agreements from all customers at a point in time. We be incurred in the future, although it is important to note that these factors could be material to
calculate ARR by taking the monthly recurring revenue (MRR) and multiplying it by 12. MRR is defined Zoom’s results computed in accordance with GAAP.
as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the
last month of the period, including revenue from monthly subscribers who have not provided any
Slide 23
1. Enterprise Customers and Customers >10 Employees are rounded down to the nearest hundred.
indication that they intend to cancel their subscriptions. We then calculate the ARR from these
Enterprise customers as of the current period end (Current Period ARR), which includes any upsells,
contraction, and attrition. We divide the Current Period ARR by the Prior Period ARR to arrive at the
net dollar expansion rate. For the trailing 12 months calculation, we take an average of the net dollar
expansion rate over the trailing 12 months.

Slide 11
1. Subtotals revenue have been rounded.

© 2023 Zoom Video Communications, Inc. 24