AI Drives Growth for Xometry and Zoom in Q4 2024 Financial Results

Xometry Reports Fourth Quarter and Full Year 2024 Results - Xometry (NASDAQ:XMTR)

Q4 revenue increased 16% year-over-year to a record $149 million driven by marketplace growth of 20% year-over-year. Q4 gross profit increased 20% year-over-year to a record $59.0 million.Q4 marketplace gross profit increased 32% year-over-year driven by our AI technology and expanding supplier network. Q4 marketplace gross margin increased 320 basis points year-over-year to a record 34.5%.Q4 Adjusted EBITDA improved $3.9 million year-over-year to a profit of $1.0 million.Growth initiatives include: expanding buyer and supplier networks; driving deeper enterprise engagement; further expanding the marketplace menu; growing internationally and enhancing supplier services. NORTH BETHESDA, Md., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Xometry, Inc. XMTR, the global AI-powered marketplace connecting buyers with suppliers of manufacturing services, today reported financial results for the fourth quarter and full year ended December 31, 2024. "Our AI powered marketplace continues to gain share and deliver record financial results," said Randy Altschuler, Xometry's CEO. "In Q4, we delivered stronger-than-expected marketplace growth and generated positive Adjusted EBITDA as our customers increasingly rely on Xometry for their supply chain resiliency. In 2025, we remain focused on driving global growth, scale and operating excellence." "In Q4, we delivered strong marketplace revenue growth, operating leverage and positive Adjusted EBITDA," said James Miln, Xometry's CFO. "Our record marketplace gross margin of 34.5% and operating efficiencies drove Adjusted EBITDA to a profit of $1.0 million, a $3.9 million improvement year-over-year." Fourth Quarter 2024 Financial Highlights Marketplace revenue for the fourth quarter of 2024 was $135 million, an increase of 20% year-over-year.Marketplace Active Buyers increased 23% from 55,325 as of December 31, 2023 to 68,267 as of December 31, 2024.Marketplace Accounts with Last Twelve-Months Spend of at least $50,000 increased 12% from 1,331 as of December 31, 2023 to 1,495 as of December 31, 2024.Supplier services revenue for the fourth quarter of 2024 was $14.0 million, a decrease of 13% year-over-year driven primarily by the exit of non-core supplier services and to a lesser extent advertising and marketing services. Net loss attributable to common stockholders for the fourth quarter of 2024 was $9.9 million, a decrease of $0.7 million year-over-year. Net loss for the fourth quarter of 2024 included $8.2 million of stock-based compensation, $0.1 million of payroll tax expense related to stock-based compensation and $3.4 million of depreciation and amortization expense. Adjusted EBITDA for the fourth quarter of 2024 was a profit $1.0 million, reflecting an improvement of $3.9 million year-over-year.Non-GAAP net income for the fourth quarter of 2024 was $3.2 million, as compared to a Non-GAAP net loss of $0.4 million in the fourth quarter of 2023.Cash, cash equivalents and marketable securities were $240 million as of December 31, 2024, an increase of $5.8 million from September 30, 2024. Fourth Quarter 2024 Business Highlights Grew the number of Active Suppliers 28% year-over-year from 3,429 to 4,375. In the fourth quarter, we expanded our supplier base in the U.S. with a focus on key quality certifications to serve the needs of our larger customers across key industries.Expanded international economy pricing on Xometry marketplace, giving our domestic customers the ability to instantly quote additive processes with global suppliers. This move reflects our growing operational capacities in key manufacturing regions such as Turkey and India.Enhanced marketplace certifications for a range of industries furthering our capabilities for enterprise accounts. Xometry retained a key certification for the automotive industry - IATF 16949, an international quality standard enabling the company to expand the breadth of automotive manufacturing on the Xometry marketplace. This certification joins our other key certifications - AS9100 certification for the aerospace and defense industries, and the ISO13485 certification for medical devices which underscores the quality of the Xometry marketplace.Received a new patent for our Xometry Instant Quoting Engine® entitled "Methods and Apparatus for Machine Learning Predictions of Manufacturing Processes." Xometry now owns 12 U.S. patents related to the use of machine learning for generating fabrication and manufacturing predictions, such as price, manufacturability and suitable materials. Full Year 2024 Financial Highlights Marketplace revenue for the full year of 2024 was $486 million, an increase of 23% year-over-year.Supplier services revenue for the full year of 2024 was $59.6 million, a decrease of 13% year-over-year driven primarily by the exit of non-core supplier services and to a lesser extent advertising and marketing services. Net loss attributable to common stockholders for the full year of 2024 was $50.4 million, a decrease of $17.1 million year-over-year. Net loss for the full year of 2024 included $29.3 million of stock-based compensation, $1.0 million of payroll tax expense related to stock-based compensation and $13.0 million of depreciation and amortization expense. Adjusted EBITDA for the full year of 2024 was a loss of $9.7 million, reflecting an improvement of $17.8 million year-over-year.Non-GAAP net loss for the full year of 2024 was $2.1 million, as compared to a Non-GAAP net loss of $19.4 million for the full year of 2023. Full Year 2024 Business Highlights Expanded our US marketplace menu with instant pricing and lead time auto-quote offerings for tube cutting and tube bending. Through our partnership with Google Cloud, Xometry is leveraging Vertex AI to accelerate the deployment of new auto-quote methods and models on our marketplace.Introduced new features for our Teamspace enterprise collaboration software. Teamspace moves the Xometry marketplace from a focus on individual buyers and parts to procurement teams managing essential programs. New features include expanded collaboration, order management tools and comprehensive quote histories. Since launching Teamspace, over 5,000 teams have been created.Launched a marketplace buyer dashboard for tooling processes, including injection molding. The new dashboard provides engineers and procurement professionals details about their various tools, and a view of their tool production workflow (tracking everything from quoting, design-for-manufacturability, tool production and part production).Expanded European marketplace menu including new processes, materials and languages. Xometry Europe added vacuum casting to the Xometry Instant Quoting Engine, new steel and aluminum grades options and expanded its finishing options for 3D printing. Xometry Europe launched the Czech and Hungarian languages on the site. Worldwide, the Xometry marketplace is available in 18 languages.Delivered a suite of tools on the European marketplace that makes it easier for enterprise customers to order parts for their high-volume manufacturing projects. The tools give engineers, designers, procurement professionals and project managers everything they need to coordinate, collaborate and manage complex orders.In China, launched enhanced customer service capabilities on our WeChat mini app for buyers to quote, order and track deliveries.Released new features for Thomas, including new self-serve tools for suppliers to create custom advertising campaigns on Thomasnet®. The new tools let suppliers select from among 78,000 categories and keywords that best reflect their products and services and present a range of suggested budgets tailored to their marketing spend. Financial Summary (In thousands, except per share amounts) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 % Change 2024 2023 % Change Consolidated Revenue $148,546 $128,145 16% $545,529 $463,406 18%Gross profit 59,020 49,085 20% 215,624 178,259 21%Net loss attributable to common stockholders (9,889) (10,551) 6% (50,401) (67,472) 25%EPS, basic and diluted, of Class A and Class B common stock (0.20) (0.22) 9% (1.03) (1.41) 27%Adjusted EBITDA(1) 1,049 (2,850) 137% (9,676) (27,490) 65%Non-GAAP net income (loss)(1) 3,165 (400) 891% (2,069) (19,355) 89%Non-GAAP EPS, basic and diluted(1), of Class A and Class B common stock 0.06 (0.01) 700% (0.04) (0.40) 90% Marketplace Revenue $134,508 $112,090 20% $485,946 $394,754 23%Cost of revenue 88,087 77,024 (14)% 323,365 273,264 (18)%Gross Profit $46,421 $35,066 32% $162,581 $121,490 34%Gross Margin 34.5% 31.3% 3.2% 33.5% 30.8% 2.7% Supplier services Revenue $14,038 $16,055 (13)% $59,583 $68,652 (13)%Cost of revenue 1,439 2,036 29% 6,540 11,883 45%Gross Profit $12,599 $14,019 (10)% $53,043 $56,769 (7)%Gross Margin 89.7% 87.3% 2.4% 89.0% 82.7% 6.3% These non-GAAP financial measures, and the reasons why we believe these non-GAAP financial measures are useful, are described below and reconciled to their most directly comparable GAAP measures in the accompanying tables. Key Operating Metrics(2): As of December 31, 2024 2023 % Change Active Buyers(3) 68,267 55,325 23%Percentage of Revenue from Existing Accounts(3) 97% 96% Accounts with Last Twelve-Months Spend of at Least $50,000(3) 1,495 1,331 12%Active Paying Suppliers(3) 6,582 7,271 (9)% These key operating metrics are for Marketplace and Supplier Services. See "Key Terms for our Key Metrics and Non-GAAP Financial Measures" below for definitions of these metrics.Amounts shown for Active Buyers, Accounts with Last Twelve-Months Spend of at Least $50,000, and Active Paying Suppliers are as of December 31, 2024 and 2023, and Percentage of Revenue from Existing Accounts is presented for the quarters ended December 31, 2024 and 2023. Financial Guidance and Outlook: Q1 2025 (in millions) Low High Revenue $147 $149 For Q1 2025, expect revenue of $147-$149 million, representing 20-21% growth year-over-year. This includes an unfavorable foreign exchange impact of approximately $1.0 million. For Q1 2025, expect Adjusted EBITDA loss of approximately $1.5 million, an improvement of approximately $6.0 million from an Adjusted EBITDA loss of $7.5 million in Q1 2024. For FY 2025, expect total revenue growth to exceed revenue growth in 2024. We expect marketplace revenue growth of at least 20% year-over-year and expect supplier services revenue to be down approximately 5-10% year-over-year.For FY 2025, expect to be Adjusted EBITDA positive for the full year. Xometry's first quarter 2025 and full year 2025 financial outlook is based on a number of assumptions that are subject to change and many of which are outside of its control. If actual results vary from these assumptions, Xometry's expectations may change. There can be no assurance that Xometry will achieve these results. Reconciliation of Adjusted EBITDA on a forward-looking basis to net loss, the most directly comparable GAAP measure, is not available without unreasonable efforts due to the high variability and complexity and low visibility with respect to certain charges excluded from this non-GAAP measure, including interest and dividend income, benefit for income taxes, charitable contributions of common stock and impairment of assets. Xometry expects the variability of these items could have a significant, and potentially unpredictable, impact on its future GAAP financial results. Use of Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), Xometry, Inc. ("Xometry", the "Company", "we" or "our") uses Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP Earnings Per Share basic and diluted, which are considered non-GAAP financial measures, as described below. These non-GAAP financial measures are presented to enhance the user's overall understanding of Xometry's financial performance and should not be considered a substitute for, nor superior to, the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measures presented in this release, together with the GAAP financial results, are the primary measures used by the Company's management and board of directors to understand and evaluate the Company's financial performance and operating trends, including period-to-period comparisons, because they exclude certain expenses and gains that management believes are not indicative of the Company's core operating results. Management also uses these measures to prepare and update the Company's short and long term financial and operational plans, to evaluate investment decisions, and in its discussions with investors, commercial bankers, equity research analysts and other users of the Company's financial statements. Accordingly, the Company believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company's operating results in the same manner as the Company's management and in comparing operating results across periods and to those of Xometry's peer companies. In addition, from time to time we may present adjusted information (for example, revenue growth) to exclude the impact of certain gains, losses or other changes that affect period-to-period comparability of our operating performance. The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows, that affect the Company's financial performance and operations. Additionally, non-GAAP financial measures do not have standardized meanings, and therefore other companies, including peer companies, may use the same or similarly named measures but exclude or include different items or use different computations. Management compensates for these limitations by reconciling these non-GAAP financial measures to their most comparable GAAP financial measures in the tables captioned "Reconciliations of Non-GAAP Financial Measures" included at the end of this release. Investors and others are encouraged to review the Company's financial information in its entirety and not rely on a single financial measure. Key Terms for our Key Metrics and Non-GAAP Financial Measures Marketplace revenue: includes the sale of parts and assemblies on our platform. Supplier service revenue: includes the sales of marketing and advertising services and, to a lesser extent, financial service products, SaaS-based solutions and the sale of tools and materials, which was discontinued during the second quarter of 2023. Active Buyers: The Company defines "buyers" as individuals who have placed an order to purchase on-demand parts or assemblies on our marketplace. The Company defines Active Buyers as the number of buyers who have made at least one purchase on our marketplace during the last twelve months. We adjusted the number of our Q4 2023 active buyers in 2024 to reflect an immaterial correction. Active Suppliers: The Company defines "suppliers" as individuals or businesses that have been approved by us to either manufacture a product on our platform for a buyer or have utilized our supplier services, including our digital marketing services, data services, financial services or tools and materials. The Company defines Active Suppliers as suppliers that have used our platform at least once during the last twelve months to manufacture a product. Percentage of Revenue from Existing Accounts: The Company defines an "account" as an individual entity, such as a sole proprietor with a single buyer or corporate entities with multiple buyers, having purchased at least one part on our marketplace. The Company defines an existing account as an account where at least one buyer has made a purchase on our marketplace. Accounts with Last Twelve-Month Spend of At Least $50,000: The Company defines Accounts with Last Twelve-Month Spend of At Least $50,000 as an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period. Active Paying Suppliers: The Company defines Active Paying Suppliers as individuals or businesses who have purchased one or more of our supplier services, including digital marketing services, data services, financial services or tools and materials on our platforms, during the last twelve months. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA): The Company defines Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other expenses, benefit for income taxes, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, stock-based compensation, payroll tax expense related to stock-based compensation, lease abandonment, charitable contributions of common stock, income from unconsolidated joint venture, impairment of assets, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of the Company's ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Non-GAAP net income (loss): The Company defines non-GAAP net income (loss) as net loss adjusted for depreciation and amortization, stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, loss on sale of property and equipment, charitable contributions of common stock, lease abandonment and termination, impairment of assets, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of the Company's ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Non-GAAP Earnings Per Share, basic and diluted (Non-GAAP EPS, basic and diluted): The Company calculates non-GAAP earnings per share, basic and diluted as non-GAAP net income (loss) divided by weighted average number of shares of common stock outstanding. Management believes that the exclusion of certain expenses and gains in calculating Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP EPS, basic and diluted, provides a useful measure for period-to-period comparisons of the Company's underlying core revenue and operating costs that is focused more closely on the current costs necessary to operate the Company's businesses and reflects its ongoing business in a manner that allows for meaningful analysis of trends. Management also believes that excluding certain non-cash charges can be useful because the amount of such expenses is the result of long-term investment decisions made in previous periods rather than day-to-day operating decisions. About Xometry Xometry's XMTR AI-powered marketplace, popular Thomasnet® industrial sourcing platform and suite of cloud-based services are rapidly digitizing the manufacturing industry. Xometry provides manufacturers the critical resources they need to grow their business and makes it easy for buyers to create locally resilient supply chains. The Xometry Instant Quoting Engine® leverages millions of pieces of data to analyze complex parts in real-time, matches buyers with the right suppliers globally, and provides accurate pricing and lead times. Learn more at www.xometry.com or follow @xometry. Conference Call and Webcast Information The Company will host a conference call and webcast to discuss the results at 8:30 a.m. ET (5:30 a.m. PT) on February 25, 2025. In addition to its press release announcing its fourth quarter and full year 2024 financial results, Xometry will release an earnings presentation, which will be available on its investor website at investors.xometry.com. Xometry, Inc. Fourth Quarter and Full Year 2024 Earnings Presentation and Conference Call Tuesday, February 25, 20258:30 a.m. Eastern / 5:30 a.m. PacificTo access the webcast use the following link: https://register.vevent.com/registerYou may also visit the Xometry Investor Relations Homepage at investors.xometry.com to listen to a live webcast of the call Cautionary Information Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our beliefs regarding our financial position and operating performance, including our outlook and guidance for the first quarter of 2025 and the full year 2025; our expectations regarding our growth; and statements regarding our strategies, initiatives, products and platform capabilities. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth, financial performance, our ability to forecast our performance due to our limited operating history, investments in new products or offerings, our ability to attract buyers and sellers to our marketplace, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, our brand and reputation, and the impact of fluctuations in general macroeconomic conditions, such as fluctuations in inflation and rising interest rates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC. All forward-looking statements in this press release are based on information available to Xometry and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. Investor Contact: Media Contact:Shawn Milne VP Investor Relations 240-335-8132 [email protected] Matthew Hutchison Global Corporate Communications 415-583-2119 [email protected] Xometry, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $22,232 $53,424 Marketable securities 217,603 215,352 Accounts receivable, less allowance for credit losses of $4.9 million and $2.4 million as of December 31, 2024 and December 31, 2023 73,962 70,102 Inventory 3,915 2,885 Prepaid expenses 4,954 5,571 Other current assets 4,874 8,897 Total current assets 327,540 356,231 Property and equipment, net 44,825 35,637 Operating lease right-of-use assets 8,462 12,251 Investment in unconsolidated joint venture 4,065 4,114 Intangible assets, net 32,139 35,768 Goodwill 262,686 262,915 Other assets 412 471 Total assets $680,129 $707,387 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued cost of revenue $35,023 $43,878 Other accrued expenses 24,401 22,677 Contract liabilities 7,948 7,357 Income taxes payable 979 2,484 Operating lease liabilities, current portion 6,436 6,799 Total current liabilities 74,787 83,195 Convertible notes 283,628 281,769 Operating lease liabilities, net of current portion 5,072 10,951 Deferred income taxes 229 275 Other liabilities 817 778 Total liabilities 364,533 376,968 Commitments and contingencies Stockholders' equity Preferred stock, $0.000001 par value. Authorized; 50,000,000 shares; zero shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively -- -- Class A Common stock, $0.000001 par value. Authorized; 750,000,000 shares; 48,289,274 shares and 45,489,379 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively -- -- Class B Common stock, $0.000001 par value. Authorized; 5,000,000 shares; 1,475,311 shares and 2,676,154 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively -- -- Additional paid-in capital 685,054 648,317 Accumulated other comprehensive (loss) income (328) 855 Accumulated deficit (370,273) (319,872)Total stockholders' equity 314,453 329,300 Noncontrolling interest 1,143 1,119 Total equity 315,596 330,419 Total liabilities and stockholders' equity $680,129 $707,387 Xometry, Inc. and Subsidiaries Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenue $148,546 $128,145 $545,529 $463,406 Cost of revenue 89,526 79,060 329,905 285,147 Gross profit 59,020 49,085 215,624 178,259 Sales and marketing 26,546 25,373 108,437 93,688 Operations and support 16,057 12,922 58,975 52,372 Product development 10,370 8,892 39,322 34,462 General and administrative 17,487 14,437 64,957 70,916 Impairment of assets 82 - 82 397 Total operating expenses 70,542 61,624 271,773 251,835 Loss from operations (11,522) (12,539) (56,149) (73,576)Other income (expenses) Interest expense (1,188) (1,188) (4,752) (4,784)Interest and dividend income 2,507 2,959 10,782 11,607 Other expenses 307 (355) (757) (1,511)Income from unconsolidated joint venture (41) 9 452 446 Total other income 1,585 1,425 5,725 5,758 Loss before income taxes (9,937) (11,114) (50,424) (67,818)Benefit for income taxes 41 561 21 353 Net loss (9,896) (10,553) (50,403) (67,465)Net (loss) income attributable to noncontrolling interest (7) (2) (2) 7 Net loss attributable to common stockholders $(9,889) $(10,551) $(50,401) $(67,472)Net loss per share, basic and diluted, of Class A and Class B common stock $(0.20) $(0.22) $(1.03) $(1.41)Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted, of Class A and Class B common stock 49,606,759 48,096,142 49,082,722 47,914,039 Net loss $(9,896) $(10,553) $(50,403) $(67,465)Comprehensive loss: Foreign currency translation (1,587) 91 (1,157) 849 Total other comprehensive (loss) income (1,587) 91 (1,157) 849 Comprehensive loss (11,483) (10,462) (51,560) (66,616)Comprehensive income (loss) attributable to noncontrolling interest 16 (16) 24 29 Total comprehensive loss attributable to common stockholders $(11,499) $(10,446) $(51,584) $(66,645) Xometry, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) Year Ended December 31, 2024 2023 Cash flows from operating activities: Net loss $(50,403) $(67,465)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 13,012 10,738 Impairment of assets 82 397 Reduction in carrying amount of right-of-use asset 4,458 14,355 Stock-based compensation 29,322 22,118 Revaluation of contingent consideration 137 571 (Income) from unconsolidated joint venture (42) (46)Donation of common stock 1,686 1,029 Loss on sale of property and equipment 3 92 Inventory write-off -- 223 Amortization of deferred costs on convertible notes 1,859 1,860 Deferred tax benefit (46) (154)Changes in other assets and liabilities: Accounts receivable, net (5,749) (20,594)Inventory (1,282) (1,550)Prepaid expenses 599 1,669 Other assets 4,213 (80)Accounts payable and accrued cost of revenue (8,706) 12,593 Other accrued expenses 2,681 1,603 Contract liabilities 681 (1,404)Lease liabilities (6,911) (5,520)Other liabilities 527 - Income taxes payable (1,505) (312)Net cash used in operating activities (15,384) (29,877)Cash flows from investing activities: Purchases of marketable securities (18,751) (11,582)Proceeds from sale of marketable securities 16,500 50,000 Purchases of property and equipment (18,097) (18,486)Distributions in excess of earnings 90 -- Proceeds from sale of property and equipment 79 223 Cash paid for business combination, net of cash acquired -- (3,349)Net cash (used in) provided by investing activities (20,179) 16,806 Cash flows from financing activities: Proceeds from stock options exercised 5,104 1,909 Payment of contingent consideration (465) (842)Net cash provided by financing activities 4,639 1,067 Effect of foreign currency translation on cash and cash equivalents (268) (234)Net decrease in cash and cash equivalents (31,192) (12,238)Cash and cash equivalents at beginning of the year 53,424 65,662 Cash and cash equivalents at end of the year $22,232 $53,424 Supplemental cash flow information: Cash paid for interest $2,875 $2,875 Non-cash investing and financing activities: Non-cash purchase of property and equipment 1,059 5,353 Non-cash consideration in connection with business combination 625 1,593 Xometry, Inc. and Subsidiaries Reconciliations of Non-GAAP Financial Measures (In thousands, except share and per share amounts) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Adjusted EBITDA: Net loss $(9,896) $(10,553) $(50,403) $(67,465)Add (deduct): Interest expense, interest and dividend income and other expenses (1,626) (1,416) (5,273) (5,312)Depreciation and amortization(1) 3,390 2,799 13,012 10,738 Amortization of lease intangible 180 180 720 950 Benefit for income taxes (41) (561) (21) (353)Stock-based compensation(2) 8,207 5,896 29,322 22,118 Payroll tax expense related to stock-based compensation(3) 89 -- 965 -- Lease abandonment(4) -- -- -- 8,706 Acquisition and other(5) -- 481 686 824 Charitable contribution of common stock 623 333 1,686 1,029 Income from unconsolidated joint venture 41 (9) (452) (446)Impairment of assets 82 -- 82 397 Restructuring charges(6) -- -- -- 738 Costs to exit the tools and materials business -- -- -- 586 Adjusted EBITDA $1,049 $(2,850) $(9,676) $(27,490) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Non-GAAP Net Income (Loss): Net loss $(9,896) $(10,553) $(50,403) $(67,465)Add (deduct): Depreciation and amortization(1) 3,390 2,799 13,012 10,738 Stock-based compensation (2) 8,207 5,896 29,322 22,118 Payroll tax expense related to stock-based compensation(3) 89 -- 965 -- Amortization of lease intangible 180 180 720 950 Amortization of deferred costs on convertible notes 465 464 1,859 1,860 Acquisition and other(5) -- 481 686 824 Loss on sale of property and equipment 25 -- 2 92 Charitable contribution of common stock 623 333 1,686 1,029 Lease abandonment and termination(4) -- -- -- 8,778 Impairment of assets 82 -- 82 397 Restructuring charges(6) -- -- -- 738 Costs to exit the tools and materials business -- -- -- 586 Non-GAAP Net Income (Loss) $3,165 $(400) $(2,069) $(19,355)Weighted-average number of shares outstanding used to compute Non-GAAP Net Income (Loss) per share, basic and diluted, of Class A and Class B common stock 49,606,759 48,096,142 49,082,722 47,914,039 Non-GAAP weighted-average effect of potentially dilutive Class A common stock 2,656,165 - - - Non-GAAP weighted-average shares used to compute Non-GAAP Net Income (Loss) per share, diluted 52,262,924 48,096,142 49,082,722 47,914,039 EPS, basic and diluted, of Class A and Class B common stock $(0.20) $(0.22) $(1.03) $(1.41)Non-GAAP EPS basic and diluted, of Class A and Class B common stock $0.06 $(0.01) $(0.04) $(0.40) Represents depreciation expense of the Company's long-lived tangible assets and amortization expense of its finite-lived intangible assets, as included in the Company's GAAP results of operations.Represents the non-cash expense related to stock-based awards granted to employees, as included in the Company's GAAP results of operations.In the second quarter of 2024, we changed the definition of Adjusted EBITDA and Non-GAAP Net Income (Loss) to exclude payroll tax expense related to stock-based compensation. For prior periods, this amount was considered de minimis and, accordingly, we have not adjusted the Adjusted EBITDA or Non-GAAP Net Income (Loss) amounts for such periods.Amount is recorded in general and administrative and/or other expenses.Includes adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.Costs associated with the May 2023 reduction in workforce. Xometry, Inc. and Subsidiaries Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Non-GAAP EPS: GAAP EPS, diluted, of Class A and Class B common stock $(0.20) $(0.22) $(1.03) $(1.41)Non-GAAP effect of potentially dilutive Class A common stock 0.01 -- -- -- Add (deduct): Depreciation and amortization 0.07 0.06 0.27 0.22 Stock-based compensation 0.16 0.12 0.60 0.46 Payroll tax expense related to stock-based compensation -- -- 0.02 -- Amortization of lease intangible -- -- 0.01 0.02 Amortization of deferred costs on convertible notes 0.01 0.01 0.04 0.04 Acquisition and other -- 0.01 0.02 0.03 Charitable contribution of common stock 0.01 0.01 0.03 0.02 Lease abandonment and termination -- -- -- 0.18 Impairment of assets -- -- -- 0.01 Restructuring charges -- -- -- 0.02 Costs to exit the tools and materials business -- -- -- 0.01 Non-GAAP EPS, diluted, of Class A and Class B common stock $0.06 $(0.01) $(0.04) $(0.40) Xometry, Inc. and Subsidiaries Segment Results (In thousands) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Segment Revenue: U.S. $123,614 $110,574 $456,727 $403,289 International 24,932 17,571 88,802 60,117 Total revenue $148,546 $128,145 $545,529 $463,406 Segment Cost of Revenue: U.S. $74,010 $68,137 $274,838 $247,519 International 15,516 10,923 55,067 37,628 Total cost of revenue $89,526 $79,060 $329,905 $285,147 Segment Adjusted EBITDA: U.S. $4,018 $(763) $167 $(15,810)International (2,969) (2,087) (9,843) (11,680)Total Adjusted EBITDA $1,049 $(2,850) $(9,676) $(27,490) Xometry, Inc. and Subsidiaries Supplemental Information (In thousands) (Unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Summary of Stock-based Compensation Expense and Payroll Taxes Related to Stock-based Compensation Expense Sales and marketing $2,233 $1,456 $8,233 $4,909 Operations and support 2,739 2,029 9,582 7,719 Product development 1,834 1,455 6,881 5,345 General and administrative 1,490 956 5,591 4,145 Total stock-based compensation expense and payroll taxes related to stock-based compensation $8,296 $5,896 $30,287 $22,118 Summary of Depreciation and Amortization Expense Cost of revenue $182 $52 $731 $172 Sales and marketing 798 782 3,185 3,162 Operations and support 34 32 139 174 Product development 2,166 1,976 8,078 5,974 General and administrative 210 (43) 879 1,256 Total depreciation and amortization expense $3,390 $2,799 $13,012 $10,738 Summary of Restructuring Charges Sales and marketing $- $- $- $224 Operations and support - - - 230 Product development - - - 117 General and administrative - - - 167 Total restructuring charge $- $- $- $738 XMTRXometry Inc $33.005.40% Overview Market News and Data brought to you by Benzinga APIs

Zoom Communications Reports Fourth Quarter and Fiscal Year 2025 Financial Results - Zoom Communications (NASDAQ:ZM)

Fourth quarter total revenue of $1,184.1 million, up 3.3% year over year as reported and 3.6% in constant currency; full fiscal year total revenue of $4,665.4 million, up 3.1% year over year as reported and 3.3% in constant currencyFourth quarter Enterprise revenue of $706.8 million, up 5.9% year over year; full fiscal year Enterprise revenue of $2,754.2 million, up 5.2% year over yearFourth quarter operating cash flow of $424.6 million, up 20.9% year over year; full fiscal year operating cash flow of $1,945.3 million, up 21.7% year over year; full fiscal year operating cash flow margin of 41.7%Fourth quarter GAAP operating margin of 19.0%, up 430 bps year over year, and non-GAAP operating margin of 39.5%, up 80 bps year over year; full fiscal year GAAP operating margin of 17.4%, up 580 bps year over year, and non-GAAP operating margin of 39.4%, up 20 bps year over yearNumber of customers contributing more than $100,000 in trailing 12 months revenue up 7.3% year over yearRepurchased approximately 4.3 million shares of common stock in fourth quarter and approximately 15.9 million shares of common stock during full fiscal year SAN JOSE, Calif., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. ZM, an AI-first work platform for human connection, today announced financial results for the fourth quarter and fiscal year ended January 31, 2025. "In FY25, Zoom AI Companion emerged as the driving force behind our transformation into an AI-first company, enabling our customers to discover enhanced productivity opportunities. As Zoom AI Companion becomes increasingly agentic, we look forward to continuing to help our customers fully realize the benefits of AI and discover what's possible with AI agents," said Eric S. Yuan, Zoom's founder and CEO. "Both Contact Center and Workvivo had incredible years capped by excellent Q4s in terms of strategic logo wins, upmarket momentum and broader customer growth. As we rapidly innovated for our customers, we delivered a robust 5.8-point expansion in FY25 GAAP operating margin driven by increased focus on prioritizing investments and controlling share-based compensation, and grew FY25 operating cash flow 21.7% year over year to nearly $2 billion, representing an operating cash flow margin of 41.7%." Fourth Quarter Fiscal Year 2025 Financial Highlights: Revenue: Total revenue for the fourth quarter was $1,184.1 million, up 3.3% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,188.0 million, up 3.6% year over year. Enterprise revenue was $706.8 million, up 5.9% year over year, and Online revenue was $477.3 million, down 0.4% year over year.Income from Operations and Operating Margin: GAAP income from operations for the fourth quarter was $225.1 million, compared to GAAP income from operations of $168.5 million in the fourth quarter of fiscal year 2024. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, was $468.0 million for the fourth quarter, compared to non-GAAP income from operations of $443.7 million in the fourth quarter of fiscal year 2024. For the fourth quarter, GAAP and non-GAAP operating margin was 19.0% and 39.5%, respectively, up from 14.7% and 38.7%, respectively, in the fourth quarter of fiscal year 2024.Net Income and Diluted Net Income Per Share: GAAP net income for the fourth quarter was $367.9 million, or $1.16 per share, compared to GAAP net income of $298.8 million, or $0.95 per share in the fourth quarter of fiscal year 2024. Non-GAAP net income, which adjusts for stock-based compensation expense and related payroll taxes, gains on strategic investments, net, acquisition-related expenses, and the tax effects on non-GAAP adjustments, was $446.9 million for the fourth quarter. Non-GAAP net income per share was $1.41 in the fourth quarter. In the fourth quarter of fiscal year 2024, non-GAAP net income was $444.0 million, or $1.42 per share. Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of January 31, 2025 was $7.8 billion.Cash Flow: Net cash provided by operating activities was $424.6 million for the fourth quarter, compared to $351.2 million in the fourth quarter of fiscal year 2024, up 20.9% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $416.2 million in the fourth quarter, compared to $332.7 million in the fourth quarter of fiscal year 2024, up 25.1% year over year. Full Fiscal Year 2025 Financial Highlights: Revenue: Total revenue for the fiscal year was $4,665.4 million, up 3.1% year over year. After adjusting for foreign currency impact, revenue in constant currency was $4,675.0 million, up 3.3% year over year. Enterprise revenue was $2,754.2 million, up 5.2% year over year, and Online revenue was $1,911.2 million, up 0.2% year over year.Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $813.3 million, compared to GAAP income from operations of $525.3 million for fiscal year 2024. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, litigation settlements, net, and acquisition-related expenses, was $1,837.9 million for the fiscal year, compared to non-GAAP income from operations of $1,774.9 million for fiscal year 2024. For the fiscal year, GAAP and non-GAAP operating margin was 17.4% and 39.4% respectively, up from 11.6% and 39.2%, respectively, in the fourth quarter of fiscal year 2024.Net Income and Diluted Net Income Per Share: GAAP net income for the fiscal year was $1,010.2 million, or $3.21 per share, compared to GAAP net income of $637.5 million, or $2.07 per share for fiscal year 2024. Non-GAAP net income, which adjusts for stock-based compensation expense and related payroll taxes, litigation settlements, net, gains on strategic investments, net, acquisition-related expenses, and the tax effects on non-GAAP adjustments, was $1,744.8 million for the fiscal year. Non-GAAP net income per share was $5.54. In fiscal year 2024, non-GAAP net income was $1,608.0 million, or $5.21 per share. Cash Flow: Net cash provided by operating activities was $1,945.3 million for the fiscal year, compared to $1,598.8 million for fiscal year 2024 up 21.7% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $1,808.7 million, compared to $1,471.9 million for fiscal year 2024, up 22.9% year over year. Customer Metrics: Drivers of revenue included acquiring new customers and expanding across existing customers. At the end of the fourth quarter of fiscal year 2025, Zoom had: Approximately 192,600 Enterprise customers.A trailing 12-month net dollar expansion rate for Enterprise customers of 98%.4,088 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 7.3% from the same quarter last fiscal year.Online average monthly churn of 2.8% for the fourth quarter, down 20 bps from the same quarter last fiscal year.At the end of the fourth quarter, the percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 75.1%, up 90 bps year over year. As Zoom continues to expand and evolve, we have seen an increasing overlap between our Enterprise and Online customer categories. Over time, customers with lower MRR are expected to move from Enterprise to Online as we optimize our sales strategies. While these moves do not have a material impact on other customer metrics, the number of customers between these two groups has become less meaningful as a customer metric. Therefore, beginning in the first quarter of fiscal year 2026, we will no longer report the number of Enterprise customers as a customer metric. However, we will continue to provide this metric in the appendix of our investor deck through the end of fiscal year 2026, which will be accessible on our investor relations website (investors.zoom.us). Financial Outlook: Zoom is providing the following guidance for its first quarter of fiscal year 2026 and its full fiscal year 2026. First Quarter Fiscal Year 2026: Total revenue is expected to be between $1.162 billion and $1.167 billion and revenue in constant currency is expected to be between $1.168 billion and $1.173 billion. Non-GAAP income from operations is expected to be between $440.0 million and $445.0 million. First quarter non-GAAP diluted EPS is expected to be between $1.29 and $1.31 with approximately 316 million non-GAAP weighted average shares outstanding.Full Fiscal Year 2026: Total revenue is expected to be between $4.785 billion and $4.795 billion and revenue in constant currency is expected to be between $4.803 billion and $4.813 billion. Non-GAAP income from operations is expected to be between $1.850 billion and $1.860 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $5.34 and $5.37 with approximately 318 million non-GAAP weighted average shares outstanding. Full fiscal year free cash flow is expected to be between $1.680 billion and $1.720 billion. The EPS and share count figures do not include any impact from $1.6 billion of authorized share repurchase remaining as of January 31, 2025. Additional information on Zoom's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom's results computed in accordance with GAAP. A supplemental financial presentation and other information can be accessed through Zoom's investor relations website at investors.zoom.us. Zoom Video Earnings Call Zoom will host a Zoom Video Webinar for investors on February 24, 2025 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company's financial results, business highlights and financial outlook. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/ About Zoom Zoom's mission is to provide an AI-first platform for human connection. Reimagine teamwork with Zoom Workplace -- Zoom's open collaboration platform with AI Companion empowers teams to be more productive. Together with Zoom Workplace, Zoom's Business Services for sales, marketing, and customer care teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded ZM and headquartered in San Jose, California. Get more information at zoom.com. Forward-Looking Statements This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the first quarter of fiscal year 2026 and full fiscal year 2026, Zoom's market position, opportunities, and growth strategy, product initiatives, including future product and feature releases and the potential of agentic AI, and go-to-market motions and the expected benefits resulting from the same, market trends, and Zoom's stock repurchase program. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "will," "would," "should," "could," "can," "predict," "potential," "target," "explore," "continue," or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements, including: declines in new customers, renewals or upgrades, or decline in demand for our platform, difficulties in evaluating our prospects and future results of operations given our limited operating history, competition from other providers of communications platforms, the effect of macroeconomic conditions on our business, including tariffs and trade tensions, inflationary pressures and market volatility, lengthened sales cycles with large organizations, delays or outages in services from our co-located data centers, failures in internet infrastructure or interference with broadband access, compromised security measures, including ours and those of the third parties upon which we rely, and global security concerns and their potential impact on regional and global economies and supply chains. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" and elsewhere in our most recent filings with the Securities and Exchange Commission (the "SEC"), including our quarterly report on Form 10-Q for the fiscal quarter ended October 31, 2024. Forward-looking statements speak only as of the date the statements are made and are based on information available to Zoom at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Non-GAAP Financial Measures Zoom has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Zoom uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Zoom's financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Zoom's condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Zoom's historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation. Non-GAAP Income from Operations and Non-GAAP Operating Margin. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, and litigation settlements, net. Zoom excludes stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding Zoom's operational performance and allows investors the ability to make more meaningful comparisons between Zoom's operating results and those of other companies. Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom's operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business. Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period. Restructuring expenses are expenses associated with a formal restructuring plan and may include employee notice period costs, severance payments, and other related expenses. Zoom excludes these restructuring expenses because they are distinct from ongoing operational costs and Zoom does not believe they are reflective of current and expected future business performance and operating results. Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business. In fact, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods that may or may not include such expenses and assist in the comparison with the results of other companies in the industry. Zoom defines non-GAAP operating margin as non-GAAP income from operations divided by GAAP revenue. Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted. Zoom defines non-GAAP net income as GAAP net income adjusted to exclude stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, gains on strategic investments, net, litigation settlements, net, income tax benefits from discrete activities, and the tax effects of all non-GAAP adjustments. Zoom excludes these items because they are considered by management to be outside of Zoom's core operating results. These adjustments are intended to provide investors and management with greater visibility to the underlying performance of Zoom's business operations, facilitate comparison of its results with other periods, and may also facilitate comparison with the results of other companies in the industry. Zoom defines non-GAAP net income per share, basic and diluted, as non-GAAP net income divided by the number of shares outstanding, basic and diluted, calculated in accordance with GAAP. Free Cash Flow and Free Cash Flow Margin. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business. Zoom defines free cash flow margin as free cash flow divided by GAAP revenue. Revenue in Constant Currency. Zoom defines revenue in constant currency as GAAP revenue adjusted for revenue reported in currencies other than United States dollars as if they were converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. Zoom provides revenue in constant currency information as a framework for assessing how Zoom's underlying businesses performed period to period, excluding the effects of foreign currency fluctuations. Customer Metrics Zoom defines a customer as a separate and distinct buying entity, which can be a single paid user or an organization of any size (including a distinct unit of an organization) that has multiple users. Zoom defines Enterprise customers as distinct business units that have been engaged by either our direct sales team, resellers, or strategic partners. All other customers that subscribe to our services directly through our website are referred to as Online customers. Zoom calculates net dollar expansion rate as of a period end by starting with the annual recurring revenue ("ARR") from Enterprise customers as of 12 months prior ("Prior Period ARR"). Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. Zoom calculates ARR by taking the monthly recurring revenue ("MRR") and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. Zoom then calculates the ARR from these Enterprise customers as of the current period end ("Current Period ARR"), which includes any upsells, contraction, and attrition. Zoom divides the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months. Zoom calculates online average monthly churn by starting with the Online customer MRR as of the beginning of the applicable quarter ("Entry MRR"). Zoom defines Entry MRR as the recurring revenue run-rate of subscription agreements from all Online customers except for subscriptions that Zoom recorded as churn in a previous quarter based on the customers' earlier indication to us of their intention to cancel that subscription. Zoom then determines the MRR related to customers who canceled or downgraded their subscription or notified us of that intention during the applicable quarter ("Applicable Quarter MRR Churn") and divides the Applicable Quarter MRR Churn by the applicable quarter Entry MRR to arrive at the MRR churn rate for Online Customers for the applicable quarter. Zoom then divides that amount by three to calculate the online average monthly churn. Public Relations Colleen Rodriguez Head of Global Public Relations [email protected] Investor Relations Charles Eveslage Head of Investor Relations [email protected] Zoom Communications, Inc. Consolidated Balance Sheets (In thousands) As of January 31, 2025 2024Assets (unaudited) Current assets: Cash and cash equivalents $1,349,380 $1,558,252Marketable securities 6,442,329 5,404,233Accounts receivable, net 495,228 536,078Deferred contract acquisition costs, current 188,358 208,474Prepaid expenses and other current assets 200,679 219,182Total current assets 8,675,974 7,926,219Deferred contract acquisition costs, noncurrent 123,464 138,724Property and equipment, net 330,475 293,704Operating lease right-of-use assets 55,900 58,975Strategic investments 591,481 409,222Goodwill 307,295 307,295Deferred tax assets 749,759 662,177Other assets, noncurrent 154,073 133,477Total assets $10,988,421 $9,929,793Liabilities and stockholders' equity Current liabilities: Accounts payable $8,345 $10,175Accrued expenses and other current liabilities 558,562 500,164Deferred revenue, current 1,336,387 1,251,848Total current liabilities 1,903,294 1,762,187Deferred revenue, noncurrent 17,274 18,514Operating lease liabilities, noncurrent 37,406 48,308Other liabilities, noncurrent 95,363 81,378Total liabilities 2,053,337 1,910,387 Stockholders' equity: Common stock 305 307Additional paid-in capital 5,130,271 5,228,756Accumulated other comprehensive income 4,990 1,063Retained earnings 3,799,518 2,789,280Total stockholders' equity 8,935,084 8,019,406Total liabilities and stockholders' equity $10,988,421 $9,929,793 Note: The amount of unbilled accounts receivable included within accounts receivable, net on the consolidated balance sheets was $118.5 million and $124.8 million as of January 31, 2025 and 2024, respectively. Zoom Communications, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share and per share amounts) Three Months Ended January 31, Year Ended January 31, 2025 2024 2025 2024Revenue $1,184,138 $1,146,457 $4,665,433 $4,527,224Cost of revenue 287,355 276,307 1,129,627 1,077,801Gross profit 896,783 870,150 3,535,806 3,449,423Operating expenses: Research and development 217,121 205,282 852,415 803,187Sales and marketing 358,903 371,052 1,427,384 1,541,307General and administrative 95,696 125,286 442,712 579,650Total operating expenses 671,720 701,620 2,722,511 2,924,144Income from operations 225,063 168,530 813,295 525,279Gains on strategic investments, net 150,357 101,296 177,142 109,770Other income, net 74,899 83,057 325,147 197,263Income before provision for income taxes 450,319 352,883 1,315,584 832,312Provision for income taxes 82,454 54,051 305,346 194,850Net income 367,865 298,832 1,010,238 637,462 Net income per share: Basic $1.20 $0.98 $3.28 $2.12Diluted $1.16 $0.95 $3.21 $2.07Weighted-average shares used in computing net income per share: Basic 306,553,952 305,822,936 307,981,971 300,748,162Diluted 316,693,346 313,467,303 315,069,582 308,519,897 Zoom Communications, Inc. Consolidated Statements of Cash Flows (Unaudited, in thousands) Three Months Ended January 31, Year Ended January 31, 2025 2024 2025 2024 Cash flows from operating activities: Net income $367,865 $298,832 $1,010,238 $637,462 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 222,939 254,373 931,309 1,057,161 Deferred income taxes (18,416) (136,735) (90,551) (116,679)Amortization of deferred contract acquisition costs 71,063 66,793 282,103 270,701 Gains on strategic investments, net (150,357) (101,296) (177,142) (109,770)Depreciation and amortization 34,591 27,272 122,632 104,451 Provision for accounts receivable allowances 2,983 6,182 20,022 35,244 Unrealized foreign exchange losses (gains) 12,364 (11,022) 17,165 12,259 Non-cash operating lease cost 6,205 5,225 24,066 21,066 Amortization of discount/premium on marketable securities (16,871) (17,463) (71,636) (50,770)Other 630 (2,419) 4,048 (7,670)Changes in operating assets and liabilities: Accounts receivable (47,632) (18,723) 26,640 53,270 Prepaid expenses and other assets (11,360) 53,208 (17,114) (71,247)Deferred contract acquisition costs (79,932) (68,303) (246,727) (214,657)Accounts payable (1,686) (2,158) (3,133) (4,416)Accrued expenses and other liabilities 65,245 51,989 62,277 51,974 Deferred revenue (26,253) (48,637) 79,995 (46,719)Operating lease liabilities, net (6,812) (5,893) (28,884) (22,824)Net cash provided by operating activities 424,566 351,225 1,945,308 1,598,836 Cash flows from investing activities: Purchases of marketable securities (919,938) (1,120,371) (4,622,104) (4,083,968)Maturities of marketable securities 919,856 773,341 3,610,274 3,131,419 Sales of marketable securities -- 1,191 47,482 1,191 Purchases of property and equipment (8,334) (18,540) (136,560) (126,953)Purchases of strategic investments (5,000) (17,727) (18,500) (70,527)Proceeds from strategic investments 8,530 62,823 13,384 170,067 Cash paid for acquisition, net of cash acquired -- -- -- (204,918)Net cash used in investing activities (4,886) (319,283) (1,106,024) (1,183,689)Cash flows from financing activities: Cash paid for repurchases of common stock (354,567) -- (1,093,878) -- Proceeds from issuance of common stock for employee stock purchase plan 19,745 21,584 54,008 54,097 Proceeds from exercise of stock options 867 1,859 4,619 10,195 Proceeds from employee equity transactions to be remitted (remitted) to employees and tax authorities, net 4,984 791 7,174 (4,106)Net cash (used in) provided by financing activities (328,971) 24,234 (1,028,077) 60,186 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (12,150) 11,077 (15,170) (10,196)Net increase (decrease) in cash, cash equivalents, and restricted cash 78,559 67,253 (203,963) 465,137 Cash, cash equivalents, and restricted cash -- beginning of year 1,282,858 1,498,127 1,565,380 1,100,243 Cash, cash equivalents, and restricted cash -- end of year $1,361,417 $1,565,380 $1,361,417 $1,565,380 Zoom Communications, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited, in thousands, except share and per share amounts) Three Months Ended January 31, Year Ended January 31, 2025 2024 2025 2024 GAAP income from operations $225,063 $168,530 $813,295 $525,279 Add: Stock-based compensation expense and related payroll taxes 232,983 262,754 966,732 1,076,212 Litigation settlements, net -- -- 16,250 52,500 Acquisition-related expenses 9,916 12,465 41,618 47,904 Restructuring expenses -- -- -- 72,993 Non-GAAP income from operations $467,962 $443,749 $1,837,895 $1,774,888 GAAP operating margin 19.0% 14.7% 17.4% 11.6%Non-GAAP operating margin 39.5% 38.7% 39.4% 39.2% GAAP net income $367,865 $298,832 $1,010,238 $637,462 Add: Stock-based compensation expense and related payroll taxes 232,983 262,754 966,732 1,076,212 Litigation settlements, net -- -- 16,250 52,500 Gains on strategic investments, net (150,357) (101,296) (177,142) (109,770)Acquisition-related expenses 9,916 12,465 41,618 47,904 Restructuring expenses -- -- -- 72,993 Income tax benefits from discrete activities -- (8,272) -- (8,272)Tax effects on non-GAAP adjustments (13,461) (20,512) (112,945) (161,006)Non-GAAP net income $446,946 $443,971 $1,744,751 $1,608,023 Net income per share - basic and diluted: GAAP net income per share - basic $1.20 $0.98 $3.28 $2.12 Non-GAAP net income per share - basic $1.46 $1.45 $5.67 $5.35 GAAP net income per share - diluted $1.16 $0.95 $3.21 $2.07 Non-GAAP net income per share - diluted $1.41 $1.42 $5.54 $5.21 GAAP and non-GAAP weighted-average shares used to compute net income per share - basic 306,553,952 305,822,936 307,981,971 300,748,162 GAAP and non-GAAP weighted-average shares used to compute net income per share - diluted 316,693,346 313,467,303 315,069,582 308,519,897 Net cash provided by operating activities $424,566 $351,225 $1,945,308 $1,598,836 Less: Purchases of property and equipment (8,334) (18,540) (136,560) (126,953)Free cash flow (non-GAAP) 416,232 332,685 1,808,748 1,471,883 Net cash used in investing activities $(4,886) $(319,283) $(1,106,024) $(1,183,689)Net cash provided by financing activities $(328,971) $24,234 $(1,028,077) $60,186 Operating cash flow margin (GAAP) 35.9% 30.6% 41.7% 35.3%Free cash flow margin (non-GAAP) 35.2% 29.0% 38.8% 32.5% Three Months Ended January 31, Year Ended January 31, 2025 2025 Revenue YoY Revenue Growth (%) Revenue YoY Revenue Growth (%)GAAP revenue $1,184,138 3.3% $4,665,433 3.1%Add: Constant currency impact 3,835 0.3% 9,545 0.2%Revenue in constant currency (non-GAAP) $1,187,973 3.6% $4,674,978 3.3% ZMZoom Communications Inc $80.25-2.73% Overview Market News and Data brought to you by Benzinga APIs