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Zoom Video Communications, Inc. ZM Increase Decrease In Deferred Contract Acquisition Costs

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Other financials

Income statement

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Revenue$1.2B+5.5%
Gross profit$964.7M+7.6%
Operating income$310.5M+28.5%
Net income$425.7M+67.2%
EPS (diluted)$1.42+75.3%

Balance sheet

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Cash & equivalents$930.9M-25.3%
Total debt$60.2M-2.1%
Total equity$10.0B+12.0%
Total assets$12.2B+11.0%

Cash flow

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Operating cash flow$521.6M+6.6%
CapEx$21.1M-18.5%
Free cash flow$500.5M+8.0%

Valuation

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Market cap$29.7B+34.2%
Enterprise value$28.83B+37.4%
P/E14.3×-4.3×
P/S+1.4×

Profitability

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Gross margin77.4%+1.5pp
Operating margin24.2%+6.0pp
Net margin42%+19.7pp
FCF margin39.8%+3.5pp

Returns & leverage

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Return on equity21.9%+9.8pp
Debt / equity0.0×
Current ratio4.2×-0.3×

Where this comes from

Reported directly by Zoom Video Communications, Inc. in its filing.

Tagged under the XBRL concept zm:IncreaseDecreaseInDeferredContractAcquisitionCosts.

The source filing: Zoom Video Communications, Inc.’s 10-Q, filed May 22, 2026. Open the filing →

Filed
May 22, 2026, 4:04 PM EDT
Fiscal quarter
Q1 FY2027
Calendar quarter
Q2 2026
Accession
0001585521-26-000071

FAQ

What is Zoom Video Communications, Inc.'s increase decrease in deferred contract acquisition costs?
Zoom Video Communications, Inc. (ZM) reported increase decrease in deferred contract acquisition costs of $86.74M in Q1 2026.
How has Zoom Video Communications, Inc.'s increase decrease in deferred contract acquisition costs changed year-over-year?
Zoom Video Communications, Inc.'s increase decrease in deferred contract acquisition costs increased by 80.2% year-over-year, from $48.15M to $86.74M.
What is the long-term trend for Zoom Video Communications, Inc.'s increase decrease in deferred contract acquisition costs?
Over 4 years (2022 to 2026), Zoom Video Communications, Inc.'s increase decrease in deferred contract acquisition costs has grown at a 4.6% compound annual growth rate (CAGR), from $247.37M to $295.95M.
What does increase decrease in deferred contract acquisition costs mean?
This represents the change in capitalized costs associated with acquiring customer contracts, such as sales commissions, which are amortized over the life of the contract. An increase in this balance indicates higher spending on customer acquisition that is being deferred rather than expensed immediately. It is a key metric for understanding the cash impact of sales and marketing efficiency in subscription-based businesses.

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