Zoom Video Communications Inc - Ordinary Shares - Class A

Revenue Performance and Guidance: Zoom reported Q3 revenue of $1.178 billion, representing a 4% year-over-year growth, which exceeded guidance by $13 million. For Q4, the company expects revenue in the range of $1.175 to $1.18 billion, indicating a 2.7% year-over-year growth at the midpoint. Full fiscal year 2025 revenue guidance has been raised to $4.656 to $4.661 billion, reflecting an anticipated 2.9% growth year-over-year.

Non-GAAP Operating Income and Margins: Zoom's non-GAAP operating income in Q3 was $458 million, exceeding the top end of guidance by $15 million, translating to a non-GAAP operating margin of 38.9%. For Q4, the expected non-GAAP operating income is between $443 to $448 million, representing a 37.8% margin at the midpoint. For FY2025, the company anticipates a non-GAAP operating income range of $1.813 to $1.818 billion, with a 39% operating margin.

AI Initiatives and Growth Drivers: The company has made significant strides with its AI Companion 2.0, resulting in a 59% quarter-over-quarter growth in monthly active users. Zoom plans to introduce custom AI products, particularly in healthcare and education, in the first half of next year. The demand for AI proof points and productivity enhancements indicates potential for substantial future monetization and improvement in customer experience.