Zoom Communications : 2025 Annual Report

Published: 2025-05-23 12:47:11 ET ZM

Published on 05/23/2025 at 12:47

Annual Report

Fiscal 2025

Fellow Shareholders,

FY25 was a transformative year for Zoom. As I reflect on the past twelve months, I am incredibly proud of how we evolved our mission, refined our strategy, and strengthened our value proposition for our customers to

position ourselves for long-term success. We sharpened our focus as an AI-first open work platform, while significantly expanding our capabilities across communication and collaboration, customer experience, and employee engagement. Amid ongoing macroeconomic pressures, we executed with agility-dialing up innovation and delivering value to both our customers and shareholders. On the Q4 earnings call, I shared these three key strategic priorities:

Expand AI capabilities to drive customer value

Rapidly innovate within Zoom Workplace

Scale growth businesses such as Contact Center and Workvivo

These priorities are guiding Zoom now and as we look ahead, building upon the progress achieved in FY25.

Expanding AI capabilities to drive customer value Since its release in September 2023, Zoom AI Companion has rapidly become an indispensable part of our platform, driving customer value and competitive differentiation. At Zoomtopia in October 2024, we shared that more than four million accounts have AI Companion enabled-and that number has grown significantly since. More importantly, AI usage is taking hold at an accelerated pace; in Q4 the number of Monthly Active Users1increased 68% quarter over quarter, up from 59% in Q3. This trend underscores the rising demand for practical, integrated AI solutions designed to boost productivity, drive revenue, reduce costs, and enable people to focus on their most important work.

Zoom was among the first to adopt a federated, multi-model approach to AI, untethering from any one technology. This flexible approach enables us to dynamically select the most suitable model for each task, delivering the highest quality for customers while optimizing for cost efficiency. We were also early in

1Monthly Active Users represents the number of unique users using at least one feature of Zoom AI Companion in the previous 28 days.

committing to developing our AI technology without training on customer content, staying true to our deeply-held belief that trust is paramount and the best way to drive adoption of our products.

During our Zoomtopia conference in San Jose, we showcased breakthrough innovation and unveiled AI Companion 2.0, marking a step change in the evolution of Zoom's AI capabilities. This release built upon the success of popular AI Companion features like meeting summaries and in-meeting questions, and leverages the deep contextual advantages of Zoom's system of engagement to synthesize information and take action on the user's behalf. New capabilities in memory, reasoning, orchestration, and integrations with leading productivity suites represent a thoughtful and deliberate evolution from a task-specific assistant towards being truly agentic.

Our innovation engine and ambitious roadmap continue to expand Zoom's total addressable market and directly address customers' pain points. The Custom AI Companion, our first paid AI add-on in Workplace, is designed to automate workplace tasks through powerful, customizable agents. This allows organizations to tailor AI to their unique needs by connecting with their existing data and integrating seamlessly with third-party tools to drive intelligent, agentic actions. We also announced verticalized AI solutions for Healthcare and Education, and Zoom Workplace for Frontline-all on track to be generally available in FY26. These purpose-built offerings are natural extensions of our core collaboration suite and are designed to unlock growth in industries undergoing rapid transformation driven by AI automation.

Rapidly innovating within Zoom Workplace

Zoom Workplace continued to evolve in FY25, with AI infused across Zoom Phone, Meetings, Team Chat, Whiteboard and more. In Q1 we rolled out a refreshed user interface, expanded integrations, and new workflow automation capabilities. The redesigned interface streamlines the user experience, positioning Team Chat as a centralized hub for asynchronous communications-with intuitive access and seamless interoperability across all Zoom collaboration tools. In Q2 we took a major step forward in our platform vision with the launch of Zoom Docs, a powerful AI-native offering that extends our presence across more touchpoints in the productivity lifecycle. Zoom Docs enables users to transform information from across

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended January 31, 2025 OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-38865

Zoom Communications, Inc.

(Exact name of registrant as specified in its Charter)

Delaware 61-1648780

(State or other jurisdiction

of incorporation or organization)

55 Almaden Boulevard, 6th Floor San Jose, California 95113

(Address of principal executive offices and Zip Code)

(888) 799-9666

(Registrant's telephone number, including area code)

(I.R.S. Employer Identification No.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.001 par value per share

The Nasdaq Global Select Market

Securities registered pursuant to section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

The aggregate market value of the registrant's Class A common stock held by non-affiliates of the registrant, based on the closing price of a share of the registrant's Class A common stock on July 31, 2024 as reported by the Nasdaq Global Select Market on such date was approximately $15.8 billion. This calculation does not reflect a determination that certain persons are affiliates of the registrant for any other purpose.

As of February 14, 2025, the number of shares of the registrant's Class A common stock outstanding was 262,753,519 and the number of shares of the registrant's Class B common stock outstanding was 42,480,334.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive Proxy Statement relating to the 2025 Annual Meeting of Stockholders are incorporated herein by references in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended January 31, 2025.

Auditor Name: KPMG LLP Auditor Location: San Francisco, California Auditor Firm ID: 185

TABLE OF CONTENTS

Part I

Page

Item 1.

Business

Item 1A.

Risk Factors

Item 1B.

Unresolved Staff Comments

Item 1C.

Cybersecurity

Item 2.

Properties

Item 3.

Legal Proceedings

Item 4.

Mine Safety Disclosures

Part II

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases

Item 5.

of Equity Securities

Item 6.

[Reserved]

Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Item 8.

Financial Statements and Supplementary Data

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A.

Controls and Procedures

Item 9B.

Other Information

100

Item 9C.

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

100

Part III

Item 10.

Directors, Executive Officers and Corporate Governance

100

Item 11.

Executive Compensation

101

Security Ownership of Certain Beneficial Owners and Management and Related

Item 12.

Stockholder Matters

101

Item 13.

Certain Relationships and Related Transactions, and Director Independence

101

Item 14.

Principal Accountant Fees and Services

101

Part IV

Item 15.

Exhibits, Financial Statement Schedules

101

Item 16.

Form 10-K Summary

103

Signatures

104

Unless the context suggests otherwise, references in this Annual Report on Form 10-K to "Zoom," the "Company," "we," "us" and "our" refer to Zoom Communications, Inc. and, where appropriate, its subsidiaries.

Disclaimer

Zoom Communications Inc. published this content on May 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 23, 2025 at 16:46 UTC.