Zoom Video Communications has reported a net income of $219m for the second quarter of fiscal year 2025 (Q2 FY25), a 20% increase compared to $181m for the same quarter of the previous fiscal year. In the previous quarter, which is Q1 FY25, the American communications technology company posted a net income of $216.3m.
Zoom’s diluted earnings per share (EPS) in the reported second quarter ended 31 July 2024 were $0.7, an increase of 18.6%, compared to $0.59 reported in the same quarter of FY24. The communications technology company’s revenues for Q2 FY25 were up by 2% to $1.16bn, compared to $1.14bn in Q2 FY25. In Q1 FY25, Zoom’s revenues were $1.14bn.
The total operating expenses of Zoom were $675m in the reported quarter, compared to $694.5m in the corresponding quarter of FY24. Zoom’s enterprise revenue for Q2 FY25 was $682.8m, an increase of 3.5% year over year (YoY) and the company’s online revenue was $479.7m, flat YoY. For the six months ended 31 July 2024, Zoom posted a net income of $435m, a surge of 120.5% compared to $197.4m in the first six months of FY24.
Zoom’s total revenues for the first half of FY25 were $2.3bn, a 2.6% increase compared to $2.24bn in the corresponding period of the prior fiscal year. The company’s total operating expenses decreased to $1.3bn in the first six months of FY25 compared to $1.5bn in the first half of FY24.
Zoom’s AI push
Zoom has integrated artificial intelligence (AI) extensively across its products to enhance functionality and support hybrid work environments. The AI Companion, previously known as Zoom IQ, is a key component of the initiative. It automates tasks such as summarising meetings, generating transcripts, and providing real-time insights during video calls. This feature is available at no additional cost to all users with paid Zoom licenses.
Zoom has also developed an AI-powered omnichannel platform Zoom Contact Center to manage customer interactions by handling queries and providing personalised responses. Zoom Contact Center streamlines customer service processes.
This month, Zoom also introduced Zoom Docs, a document collaboration tool that utilises AI to assist teams in content creation, editing, and organisation in real time.
The tool’s AI-driven features enhance collaboration and productivity for Zoom Workplace users by streamlining teamwork, maintaining organised information, and breaking down silos.
Zoom expects its total revenue to be in the range between $1.16bn and $1.165bn, for Q3 FY25. For the third quarter of FY25, the company’s diluted EPS is estimated to be in the range of $1.29 and $1.31.
The American communications technology company aims to achieve a total revenue between $4.63bn and $4.64bn for the full FY 2025.
Zoom said it had 3,933 customers contributing over $100,000 in trailing 12 months revenue at the end of Q2 FY25. The company also had around 191,600 enterprise customers.
“In Q2, we outperformed our guidance across the board and grew operating cash flow and free cash flow by 33.7% and 26.2% year over year, respectively, demonstrating our continued commitment to efficient growth,” said Zoom Video Communications founder and CEO Eric Yuan.
“We also saw strength in large accounts, with customers contributing more than $100,000 in trailing 12 months revenue increasing by 7.1% year over year, and resilience in our Online business, with Online average monthly churn reaching its lowest ever rate.”
“Zoom Contact Center racked up several marquee customers, including its largest single order deal to date, highlighting our ability to win competitive deals for full scale, customer-facing deployments with our higher-end packages that utilise advanced AI features to enhance agent performance.”
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