Q4 2024 Summary
Published Feb 25, 2025, 9:46 PM UTCInitial Price$60.22October 31, 2023
Final Price$64.61January 31, 2024
Price Change$4.39
% Change+7.29%
- Zoom experienced reacceleration in sales productivity in the back half of FY '24 and is off to a strong start in FY '25, indicating positive momentum in sales execution.
- The company saw significant growth in emerging products, including a nearly 3x increase in Zoom Contact Center licenses and 27% year-over-year growth in Zoom Phone customers with over 10,000 seats, suggesting successful diversification and cross-selling opportunities.
- Zoom achieved strong financial performance with operating cash flow growing 66% year-over-year to $351 million and free cash flow growing 81% year-over-year to $333 million, demonstrating strong cash generation and financial discipline. Additionally, the Board authorized a $1.5 billion share repurchase program, indicating confidence in future prospects.
- Zoom expects lower year-over-year growth rates in Q2 compared to Q1, with overall growth guided at approximately 1.6% for FY '25, indicating a potential slowdown despite new product offerings.
- Net Annual Recurring Revenue (ARR) is likely to see further decline before reacceleration, suggesting near-term revenue headwinds and challenges in maintaining customer expansions.
- Customers are requesting shorter payment terms and deferring renewals, contributing to decreases in deferred revenue and possibly indicating customer uncertainty or reluctance to commit long-term.