Zoom Video Communications Inc (NASDAQ:ZM) Q3 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:30 pm ET

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Zoom Video Communications Inc (NASDAQ:ZM) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Tom McCallum

Thank you, Matt. Hello, everyone, and welcome to Zoom's Earnings Webinar for the Third Quarter of Fiscal 2020. Joining me today will be Zoom's Founder and CEO, Eric Yuan and Zoom's CFO, Kelly Steckelberg, who is actually joining us remotely from Los Angeles, demonstrating another capability of using Zoom Video Webinar for an earnings announcement.

Our earnings press release was issued today after the market closed and may be downloaded from the Investor Relations page on the zoom.com website. Also on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings press release, include a reconciliation of GAAP to non-GAAP financial results.

During the call, we may make forward-looking statements about our future financial performance and other future events or trends, including guidance. These statements are only predictions that are based on what we believe today, and actual results may differ materially.

These forward-looking statements are subject to the risks and other factors that can affect our performance and financial results and which we discuss in detail in our filings with the SEC, including today's press release and our latest 10-Q. Zoom assumes no obligation to update any forward-looking statements we make on today's webinar.

And with that, let me turn it over to Eric.

Executive
Eric S. Yuan

Thank you, Tom. Thank you, and welcome and thank you all for joining us on today's Zoom video webinar. I'm very pleased to report that we had another strong quarter, as evidenced by a combination of high revenue growth of 85%, with increased profitability and free cash flow of $54.7 million.

We continue to have success with customers of all sizes and one metric that has continued to impress is customers with more than $100,000 of trailing 12 months revenue. This metric grew 97% from Q3 last year. Our execution so far this year has put us in a position to finish the year strong and we are raising our revenue and profitability outlook for the fourth quarter, as well as full fiscal year.

As Kelly will discuss in a moment, our strong third quarter results were driven by two factors; first, our ability to attract new customers; and second, our commitment to customer happiness, which creates trust and enable us to significantly grow commitments with our existing customers. Let me discuss some of the largest deals we closed this quarter with two happy customers. Both expanded their footprint of our unified communications platform.

I'm excited that the US Postal Service is starting to deploy Zoom Meetings more broadly across the organization after an extensive proof-of-concept. The USPS is our first major agency -- major business wins since we received FedRAMP approval in May. They chose Zoom for our high quality video and audio. Thank you USPS. I love you.

We are also grateful to have National Australia Bank as part of the Zoom family. NAB is undertaking a large technology transformation and is looking to Zoom to support its enterprise