ZM Q4 Earnings Release - Quick & Dirty

Zoom stock price is up about 10% after hours today immediately following their Q4 earnings release. The company and their performance this quarter, and obviously for the entire year, did not disappoint investors.

Zoom is printing money, figuratively, with fourth quarter operating cash flow of $400 million, up 993% y/y; and full fiscal year operating cash flow of $1.5 billion, up 869% y/y.

Some other first blush KPI’s:

Total revenue for the quarter was $882.5 million, up 369% year-over-year.
Approximately 467,100 customers with more than 10 employees, up approximately 470% from the same quarter last fiscal year.
1,644 customers contributing more than $100,000 TTM (Trailing 12-month) revenue, up approximately 156% from the same quarter last fiscal year.
Net dollar expansion rate in customers with more than 10 employees was above 130% for the 11th consecutive quarter.
$4.2B in cash & equivalents
$1,751B in RPO (Remaining Performance Obligations) is insane!
GAAP income up 2,327% !! (I had to read this one twice!!)
FCF grew 12x over the year…no big surprise, but 12x!
The CEO expects continued growth and traction internationally, in Zoom Phone customers, and with larger enterprise customers
Zoom indicated the are “well positioned for continued growth” next year…though did not provide much explanation in the written release, which I will look for on the call. I could not otherwise find much to nitpick and was pleasantly surprised… well… surprised not to be surprised!

Zoom’s earnings call is at 2pm today if you can jump on and listen to their CEO, Eric Yuan, and how they did in his own words.

I’m comfortable with my 6%+ (mid-sized) portfolio position in ZM (which is up and considerably larger after hours as the stock jumps higher) and will likely maintain it depending on the call. I expect the stock to open up nicely tomorrow after being relatively depressed for the past quarter.

Cheers! -Poleeko!


$1,751B in RPO (Remaining Performance Obligations) is insane!

Typo - 1,751 M in RPO.