Zoom Communications Reports Q3 Financial Growth

Zoom Video Communications, Inc. Class A ( (ZM) ) has released its Q3 earnings. Here is a breakdown of the information Zoom Video Communications, Inc. Class A presented to its investors.

Zoom Communications, Inc., a leading provider of video conferencing and collaboration solutions, operates primarily in the technology sector and has recently rebranded from Zoom Video Communications, Inc. The company is known for its innovative approach to integrating AI technologies into its platform, enhancing the productivity of its users.

In its third-quarter fiscal year 2025 earnings report, Zoom Communications announced a total revenue of $1,177.5 million, marking a 3.6% year-over-year increase. The company also highlighted significant achievements, such as a low online monthly average churn rate of 2.7% and a major deal for its Zoom Contact Center in EMEA.

Key financial metrics from the report include a GAAP operating margin of 15.5% and a non-GAAP operating margin of 38.9%. Notably, the enterprise revenue grew by 5.8% year-over-year, while the number of high-value customers increased by 7.1%. The report also noted the repurchase of approximately 4.4 million shares, with an authorization to repurchase an additional $1.2 billion in common stock.

Zoom’s strategic focus on AI-driven solutions was evident with the introduction of AI Companion 2.0 and various industry-specific AI customizations. These developments aim to solidify Zoom’s position as a leader in AI-first work platforms, catering to global enterprises’ needs.

Looking forward, Zoom Communications maintains a positive outlook for the remainder of the fiscal year, expecting to continue its growth trajectory with a projected annual revenue range between $4.656 billion and $4.661 billion. The company remains committed to enhancing its offerings and expanding its market presence through strategic initiatives and acquisitions.