Zoom Video Communications, Inc. (NASDAQ: ZM) has reported its financial results for the second fiscal quarter ended July 31, 2024. The company's total revenue for the second quarter was $1,162.5 million, representing a 2.1% year-over-year increase. When adjusting for foreign currency impact, revenue in constant currency was $1,166.1 million, up 2.4% year over year.
The enterprise revenue for the second quarter was $682.8 million, showing a 3.5% year-over-year increase. Additionally, the company's operating cash flow for the quarter was $449.3 million, marking a substantial 33.7% year-over-year increase.
In terms of customer metrics, Zoom saw positive trends with 3,933 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 7.1% from the same quarter last fiscal year. The company also reported approximately 191,600 enterprise customers and a trailing 12-month net dollar expansion rate for enterprise customers of 98%.
Zoom's non-GAAP operating margin for the second quarter was 39.2%, while the GAAP operating margin was reported at 17.4%. The company's non-GAAP net income for the second quarter was $436.4 million, with non-GAAP net income per share at $1.39. This represents an improvement from the second quarter of fiscal year 2024, when non-GAAP net income was $409.6 million, or $1.34 per share.
Furthermore, Zoom reported that its net cash provided by operating activities was $449.3 million for the second quarter, compared to $336.0 million in the second quarter of fiscal year 2024, indicating a significant 33.7% year-over-year increase. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $365.1 million, up 26.2% year over year.
Looking ahead, Zoom provided guidance for its third quarter of fiscal year 2025, with total revenue expected to be between $1.160 billion and $1.165 billion. For the full fiscal year 2025, the company anticipates total revenue to be between $4.630 billion and $4.640 billion.
Zoom's CEO, Eric S. Yuan, expressed satisfaction with the company's performance in Q2, highlighting the growth in operating cash flow and free cash flow as demonstrations of their commitment to efficient growth. He also emphasized the company's strength in large accounts and resilience in their online business.
For further details and a reconciliation of non-GAAP results to their most comparable GAAP measures, investors can access the company's supplemental financial presentation and other information through Zoom’s investor relations website at investors.zoom.us. Zoom will host a webinar for investors on August 21, 2024, to discuss the financial results, business highlights, and financial outlook. As a result of these announcements, the company's shares have moved 1.9% on the market, and are now trading at a price of $60.23. If you want to know more, read the company's complete 8-K report here.
