1

Table of Contents

INTRODUCTION...........................................................................................................................2
SECTION A.....................................................................................................................................4
1.1 Development One: Covid 19.............................................................................................4
2.1 Development Two: The increasing popularity of online education..................................5
SECTION B: DIVINDED POLICY AND SOURCES OF FINANCE...........................................9
SECTION C: RATIO ANALYSIS.................................................................................................15
CONCLUSION..............................................................................................................................19
References......................................................................................................................................20
APPEDIX......................................................................................................................................22
CONSOLIDATED BALANCE SHEETS.............................................................................23
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INTRODUCTION

Zoom Video Communications, Inc. (NASDAQ:ZM) (commonly shortened to Zoom, and

stylized as zoom) is an American Multinational communications technology company

headquartered in San Jose, California, USA founded in 2011 by Eric Yuan, a

former Cisco engineer and executive. It launched its software in 2013.

Zoom Video Communications, Inc.  provides videotelephony and online chat services

through a cloud-based peer-to-peer software platform used for video communications

(Meetings), messaging (Chat), voice calls (Phone), conference rooms for video meetings

(Rooms), virtual events (Events) and contact centers (Contact Center), and offers an open

platform allowing third-party developers to build custom applications on its unified

communications platform (Developer Platform). Zoom Video Communications, Inc. Is one of the

most renowned communication technology companies perceived as a reliable video calling

platform for meetings, webinars, and online events (Wikipedia, 2023). The Company made

approximately $4.1bn revenue in 2021 (Business of Apps, 2023) and have been ranked among

the top 6 most popular video calling software companies in the world Yahoo Finance 10 list

(Yahoo Finance, 2022). This report analyzes Zoom Video Communications, Inc. It also describes

changes affecting Zoom Financial performance, including management of risks related to

sources of finance and dividend policy.

Zoom formed relationships with B2B collaboration software vendors such as Redbooth

(formerly Teambox) in July 2013, and also launched a program called Works with Zoom, which

formed collaborations with Logitech, Vaddio, and InFocus. Horizon Ventures and previous

investors contributed $6.5 million to the company's Series B financing in September 2013 (Zoom

Communications Inc., 2023). It had 3 million daily meeting attendees at the time. The firm got
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US$30 million in Series C fundraising on February 4, 2015, from investors including Emergence

Capital, Horizons Ventures (Li Ka-shing), Qualcomm Ventures, Jerry Yang, and Patrick Soon-

Shiong. Zoom had 40 million users at the time, 65,000 businesses subscribed, and a total of 1

billion meeting minutes since its inception. The company connected their software with Slack,

Salesforce, and Skype for Business in 2015 and 2016. Zoom extended the maximum number of

participants permitted each conference from 50 to 1,000 for commercial clients with version 2.5

in October 2015 (Zoom Communications Inc., 2023). Former RingCentral president David

Berman was elected Zoom's president in November 2015, while Peter Gassner, the founder and

CEO of Veeva Systems, joined the company's board of directors.

In January 2017, the company raised $100 million in Series D fundraising from Sequoia

Capital at a valuation of $1 billion, establishing it as a unicorn. Zoom announced a scalable

telehealth product in April 2017 that allows doctors to hold remote consultations with patients.

Zoom announced connection with Polycom's conferencing systems in May, offering multiple

screen and device meetings, HD and wireless screen sharing, and calendar synchronization with

Microsoft Outlook, Google Calendar, and iCal. Zoomtopia 2017, its inaugural annual user

conference, was held on September 25-27, 2017 (Zoom Communications Inc., 2023). Zoom

announced a partnership with Meta Platforms to connect Zoom with augmented reality,

interaction with Slack and Workplace by Facebook, and preliminary steps toward an artificial

intelligence speech recognition program during this conference.

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SECTION A

1.1 Development One: Covid 19

This is one of the developments in the global environment that has affected Zoom

financial performance is the Covid19 pandemic. Coronavirus Disease 2019 (Covid-19) first

appeared in the city of Wuhan – China at the end of 2019, then slowly spread to all parts of the

world. Based on data from WHO as of November 30, 2021, the spread of this virus has reached

more than 200 countries in the world, with 262,245,827 confirmed cases and 5,222,537 cases of

death and on March 11, 2020, WHO has declared Covid-19 a pandemic (Putri & Siregar, 2022).

The emergence of the corona virus pandemic or covid-19 has swept across the globe, killing

millions of people, shutting down economic activities and spread misery on a global scale. The

pandemic cannot be controlled quickly, so it requires proper management from both the

government and the community. One of the preventions to stop the transmission of Covid-19

which was recommended by the government was to stay at home. Owing it to these restrictions

work from home became the norm in the wake of the COVID-19 outbreak, online meetings,

online school lectures and many more became commonplace. Nobody could have guessed that

friendly online chats would grow into boardroom meetings or online classes with the help of

video conferencing software like Zoom (Mustapha, 2022).

During the early stage of the pandemic, Zoom experience a tremendous boost in a user

base and financial performance. Many organizations, educational institutions, and individuals

turned to Zoom as a primary means of communication and collaboration. Consequently, Zoom

witnessed a substantial increase in its revenue and value exceeding its expectations. Zoom on

June 2 reported fiscal 2021 first-quarter revenue of $328.2 million, up 169% from $122 million

in the prior-year quarter. GAAP net income for the quarter totaled $27 million, or 9 cents per
 5

share, up from $198,000, or zero cents per share, a year ago. Non-GAAP net income was $58.3

million, or 20 cents per share, up from $8.9 million or 3 cents per share a year ago. The S&P

Global Market Intelligence consensus estimate for the quarter was 1 cent on a GAAP basis and

10 cents on a normalized basis (Haider & Rasay, 2020).

The Zoom CEO, after facing massive criticism about the lack of privacy and security,

apologized and said that addressing Zoom’s privacy and security issues would be his top priority

as well as taking steps to improve the security of its videoconferencing app (Haldar & Rasay,

2023). Zoom had come under scrutiny over how it handled privacy and security, including its

failure to prevent uninvited guests to barge in on sessions. A phenomenon called Zoombombing,

wherein virtual intruders interrupted Zoom gatherings by guessing the meeting code, sparked

warnings about Zoom’s lax security.

In addition, Zoom followed a freemium business model, wherein it provided free limited

services for 40 minute initially to hook users and then turned them into paying subscribers in

exchange for upgraded services. Revenue was generated through a premium version with added

features to the standard free offering (Mustapha, 2022). A host was any user of the video-first

communications platform who initiated a Zoom Meeting and invited one or more participants to

join that meeting. Hosts who subscribed to a paid Zoom Meeting plan were referred to as “paid

hosts.” On the other hand, customer was a separate and distinct buying entity, and could be a

single paid host or an organization of any size that had multiple paid hosts (IBSINDIA, 2021).

2.1 Development Two: The increasing popularity of online education

This is also one of the developments in the global environment that has affected Zoom

financial performance is the increase in popularity of online education. COVID-19 outbreak lead
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to colleges and universities migrated from in-person and hybrid classrooms to fully online

learning; This transition is significant to higher education investment in digital platforms,

distance learning, learning management systems, and videoconferencing which universities life

activities continue via “virtual” classrooms, conferences, faculty meetings, and thesis and

dissertation defenses, Streaming platforms such as Zoom, Cisco Web-Ex, Microsoft Teams, and

Google Meet are increasingly crucial.

Zoom revenue rapidly increased 2020

 7

The adoption of online education makes zoom revenue increase rapidly from the above report,

The annual net profit of zoom increase from $21m in 2019 to $671m within a year as a result of

adopting of online education cause by the pandemic (Apps, 2023).

On April 30, 2020, the company was added to the NASDAQ-100 stock index. Zoom

bought Key base, a startup specializing in end-to-end encryption, in May 2020. Damien Hooper-

Campbell, the company's first chief diversity officer, was hired in June 2020. Zoom also

announced plans to open additional research and development facilities in Pittsburgh and

Phoenix in May 2020, with ambitions to hire up to 500 engineers in each city over the next few

years (Zoom Video Communications, 2023). Zoom announced the opening of a technology

center in Bangalore, India, in July 2020, to house engineering, IT, and business operations

professionals. Zoom also unveiled its first hardware as service products in July 2020, combining

its videoconferencing software with gear from DTEN, Neat, Poly, and Yealink and running on

the ServiceNow platform.

The business unveiled Zoom for Home, a line of gadgets for use at home that are

intended for remote employees, on July 15, 2020. The first item, Zoom for Home - DTEN ME,

combines DTEN hardware and Zoom software. With Zoom software already installed, it has a

27-inch screen, three wide-angle cameras, eight microphones, and other features. In August

2020, it was made accessible (Apps, 2023) . Zoom inaugurated a data facility in Singapore in

August 2020. Zoom purchased Kites (Karlsruhe Information Technology Solutions) in June 2021
 8

with the intention of lowering language barriers during video calls. Kites uses artificial

intelligence to translate languages. The shareholders of Five9 rejected Zoom's offer to buy the

contact center company for $14.7 billion in September 2021.

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SECTION B: DIVINDED POLICY AND SOURCES OF FINANCE

A well-known technology company called Zoom Communications Inc. focuses on

offering video conferencing and internet communication solutions. Since its founding in 2011, it

has had rapid development, particularly during the COVID-19 epidemic when remote work and

virtual meetings were commonplace for many organizations and people around the world (Apps,

2023).

Zoom Communication Inc. Dividend policy

A company's strategy for paying out dividends to its shareholders in the form of earnings

is referred to as its dividend policy. Zoom Communications had no history of paying dividends

as of my most recent update. Instead, it adopted a reinvestment strategy to support its

development and growth. In order to maintain its leadership position in the video conferencing

market, the company has placed a strong emphasis on creating and improving new products and

services, growing its clientele, and making research and development investments (Zoom Video

Communications, 2023). Priority was given to this plan of expansion rather than paying

dividends to shareholders.

The following variables could have had an impact on Zoom's decision not to pay dividends:

1. Growth Potential: Zoom had a substantial market potential given the rising demand for

solutions for remote communication. The business probably decided to reinvest money in

order to take advantage of growth prospects and preserve its competitive edge.

2. Technology Investment: Video conferencing technology is always evolving due to its

high degree of dynamism. To build new features and enhance the user experience, Zoom

required a significant amount of resources.

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3. Market Perception: Technology investors frequently place a higher priority on capital

appreciation than dividends, particularly for companies operating in fast-growing

industries. Reinvesting profits back into the company would help Zoom keep a favorable

reputation in the market and draw in additional investors.

4. Tax considerations: Due to potential tax consequences, businesses may decide not to pay

dividends. Reinvestment is a more tax-effective choice because retained earnings are

typically taxed at a lower rate than dividends.

Zoom`s Communication Inc. sources of finance

Zoom Communications used a variety of financing options to support its growth and cover its

expenses. Several of the important sources are:

1. Venture Capital: Zoom raised money in its early stages through venture capital

fundraising rounds. Leading venture capital firms made investments in the business,

giving the money required for R&D and market expansion.

2. Initial Public Offering (IPO): Zoom listed its shares on the NASDAQ stock exchange in

April 2019 and went public. The ticker symbol for these shares is "ZM." The IPO was a

great success, raising a lot of money and giving the company a huge valuation.

3. Secondary Offerings: To acquire more funds after the IPO, Zoom held secondary

offerings in which company issued more shares to the general public. These options gave

the business access to more money without taking on debt.

4. Debt Financing: Although Zoom's business strategy did not largely rely on borrowing, it

may have done so occasionally to manage cash flow or fund particular projects.
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5. Internal Cash Flow: Zoom's business produced a sizable amount of internal cash flow as

it expanded and turned a profit. This cash flow was put back into the business to support

operations and growth goals.

6. Strategic partnerships: Zoom may has occasionally entered into alliances with other

businesses, which may have included financial contracts to support shared objectives.

On July 18, 2021, Zoom declared that it had reached an agreement to purchase Five9 Inc. for

an all-stock deal valued at around $14.7 billion. For each share of Five9 Inc., stockholders were

to receive 0.5533 shares of Zoom Class A common stock. Five9 made the announcement that the

two parties have decided to cancel the agreement on September 30, 2021. The business claimed

that not enough Five9 shareholders had voted in favor of the merger under the terms of the

agreement. On a number of fronts, the American government has increased its investigation into

Zoom (Zoom Video Communications, 2023). The United States accused a Zoom executive based

in China of plotting to obstruct videoconference remembrances of the 1989 Tiananmen Square

democratic rallies in 2020. According to the Journal, Zoom is also the subject of multiple active

federal investigations into its interactions with Beijing. The Wall Street Journal reported earlier

in September that Team Telecom, a team under the direction of the US Department of Justice,

was looking into any national security threats associated with the proposed merger. Zoom's

connections to China took up much of the panel's attention.

Equity and Debt Analysis

Equity Analysis

After liabilities are subtracted from assets, equity is the remaining stake a corporation has in

its assets. It indicates the ownership stake of the shareholders and serves as a crucial gauge of the
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company's value and financial health. The equity for Zoom Video Communications, Inc. is

determined as follows:

As of January 31, 2021:

 Common stock: 215,737,924 shares issued and outstanding * $0.001 par value per share

= $215,738

 Additional paid-in capital: $3,187,168

 Accumulated other comprehensive income (loss): $839

 Retained earnings: $672,468

Total equity as of January 31, 2021: $3,860,767

As of January 31, 2022:

 Common stock: 247,044,454 shares issued and outstanding * $0.001 par value per share

= $247,044

 Additional paid-in capital: $3,749,514

 Accumulated other comprehensive income (loss): ($17,902) [indicates a loss]

 Retained earnings: $2,048,107

Total equity as of January 31, 2022: $5,780,018

Zoom Communications Inc.'s equity has dramatically increased, rising from $3.86 billion

in 2021 to $5.78 billion in 2022. This growth is mostly attributable to the company's capital

being raised through the issuing of more common shares. The increase of equity has also been

greatly aided by the retained earnings. Retained earnings are the company's historical profits and

losses, net of dividends and other payouts to shareholders. Additionally, as of January 31, 2022,

the business recorded an accumulated other comprehensive loss of $17,902. This line item

consists of equity changes unrelated to the company's earnings, costs, profits, or losses. It
 13

consists of things like currency conversion adjustments and modifications to the value of

securities that are offered for sale. The negative score means that during the period, losses in this

category outweighed profits. The company's expansion and increased financial stability are

indicated by the substantial increase in equity from 2021 to 2022. Additionally, it increases the

company's capacity to spend money on operations, R&D, and potential growth.

Debt Analysis

Debt is the sum of money a company owes to outside creditors and is a key sign of the

organization's financial risk and leverage. For Zoom Video Communications, Inc., the total

liabilities listed on the consolidated balance sheets are used to calculate debt.

As of January 31, 2021:

 Total liabilities: $1,437,226

As of January 31, 2022:

 Total liabilities: $1,771,300

Total liabilities for Zoom Video Communications, Inc. grew from $1.44 billion in 2021 to

$1.77 billion in 2022. Numerous variables, including greater borrowing, larger accounts payable,

and postponed revenue, may be to blame for this rise in liabilities. Liabilities are made up of both

current and noncurrent components, it is vital to remember that. In contrast to noncurrent

liabilities, which have longer payback terms, current liabilities are debts that are due within a

year. Given the considerable growth in equity and the context of the rising obligations, financial

trouble for the company may not necessarily be indicated. To maintain financial stability and

fulfill its debt obligations without placing an undue burden on its cash flows, the company must

manage its debt levels carefully.

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SECTION C: RATIO ANALYSIS

This section has calculated 8 ratios of the Zoom Communication Inc.:

I have used the financial information from Zoom Video Communications, Inc.'s consolidated

balance sheets and consolidated statements of operations to calculate and define the eight

financial ratios for the fiscal years 2021 and 2022.

1. Current Ratio:

The current ratio evaluates a company's capacity to use its current assets to cover its

short-term liabilities. The formula is as follows:

Current Ratio = Current Assets / Current Liabilities

 Current Ratio for 2021: 4,792,865 / 1,259,966 = 3.80

 Current Ratio for 2022: 6,183,807 / 1,579,691 = 3.91

In 2022, Zoom's current ratio rose from 3.80 in 2021 to 3.91. Since both ratios are greater than 1,

Zoom had enough current assets in both years to satisfy its short-term liabilities. This could mean

that the business was well-positioned to meet its short-term financial obligations.

2. Quick Ratio (Acid-Test Ratio):

A more exact indicator of a company's capacity to meet its short-term obligations is the quick

ratio. Since inventory might not be quickly convertible to cash in the near future, it is excluded

from current assets.

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

 Quick Ratio for 2021: (4,792,865 - 0) / 1,259,966 = 3.80

 Quick Ratio for 2022: (6,183,807 - 0) / 1,579,691 = 3.91

The quick ratio is a stricter measure of liquidity that isolates inventory from current assets and

concentrates on the assets with the highest liquidity. An advantageous fast ratio is one that is
 16

more than 1, since it shows that the business can satisfy its short-term obligations without having

to sell inventory. Both the quick ratio and the current ratio for Zoom are same. This shows that

without relying on inventory sales, Zoom's current assets, excluding inventory, remained

sufficient to satisfy short-term commitments. It reflects the business's aptitude for successfully

navigating immediate financial difficulties.

3. Debt-to-Equity Ratio:

The debt-to-equity ratio reveals how much of a company's funding is provided by debt as

opposed to stock.

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity

 Debt-to-Equity Ratio for 2021: 1,437,226 / 3,860,767 = 0.37

 Debt-to-Equity Ratio for 2022: 1,771,300 / 5,780,018 = 0.31

As of 2022, Zoom's debt-to-equity ratio was 0.31, down from 0.37 in 2021. This shows that the

corporation relied less on debt funding and more on stock, which boosted its financial situation.

Lower levels of debt are advantageous since they might cut down on interest costs and financial

risk.

4. Return on Equity (ROE):

By displaying how much profit a company makes in relation to the equity of its

shareholders, ROE quantifies the profitability of a business.

ROE = (Net Income / Average Stockholders' Equity) * 100

 ROE for 2021: (671,527 / ((3,860,767 + 5,780,018) / 2)) * 100 ≈ 15.56%

 ROE for 2022: (1,375,057 / ((5,780,018 + 7,551,318) / 2)) * 100 ≈ 17.62%

 17

From 15.56% in 2021 to 17.62% in 2022, Zoom's ROE grew. This shows that the company's

profitability increased, leading to better returns on equity held by shareholders. It implies that

Zoom's management was effective in turning a profit on shareholders' money in both years.

5. Gross Profit Margin:

The percentage of revenue that exceeds the cost of products sold is known as the gross profit

margin.

Gross Profit Margin = (Gross Profit / Revenue) * 100

 Gross Profit Margin for 2021: (1,829,379 / 2,651,368) * 100 ≈ 68.98%

 Gross Profit Margin for 2022: (3,045,310 / 4,099,864) * 100 ≈ 74.28%

In 2022, Zoom's gross profit margin grew to 74.28% from 68.98% in 2021. This suggests that the

business was able to enhance its pricing and cost-efficiency tactics, leading to larger earnings on

each dollar of sales. It illustrates the business's capacity to maintain a dominant position in the

marketplace and keep its cost of goods sold under control.

6. Operating Profit Margin:

The operating profit margin, which excludes non-operating items, gauges the profitability

of a business's main operations.

Operating Profit Margin = (Income from Operations / Revenue) * 100

 Operating Profit Margin for 2021: (659,848 / 2,651,368) * 100 ≈ 24.89%

 Operating Profit Margin for 2022: (1,063,591 / 4,099,864) * 100 ≈ 25.93%

When compared to 2021 and 2022, Zoom's operating profit margin increased somewhat, from

25.93% to 24.89%. This shows that the company's primary business operations remained

successful and effective over the course of the two years.

7. Return on Assets (ROA):

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ROA demonstrates how effectively a business turns a profit off of its assets.

ROA = (Net Income / Average Total Assets) * 100

 ROA for 2021: (672,316 / ((5,297,993 + 7,551,318) / 2)) * 100 ≈ 9.36%

 ROA for 2022: (1,375,639 / ((7,551,318 + 9,159,856) / 2)) * 100 ≈ 15.30%

From 9.36% in 2021 to 15.30% in 2022, Zoom's ROA grew. This implies that the business was

able to make more money from its assets, demonstrating increased asset utilization efficiency

and superior overall performance.

8. Earnings per Share (EPS):

The amount of profit allotted to each outstanding share of common stock is known as earnings

per share, or EPS.

EPS = Net Income / Weighted-average Shares Outstanding

 EPS for 2021: 671,527 / 296,334,894 ≈ $2.26

 EPS for 2022: 1,375,057 / 305,826,505 ≈ $4.50

The EPS for Zoom substantially increased from $2.26 in 2021 to $4.50 in 2022. This significant

increase in EPS highlights the company's ability to increase profits and distribute rewards to

shareholders while also underscoring its overall strong financial performance.

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CONCLUSION

In conclusion, Zoom Video Communications, Inc.'s considerable equity rise from 2021 to

2022 indicates the performance and financial stability of the business. The company's use of debt

to fund its operations and expansion is also indicated by the rise in total liabilities. It is essential

to take these measures into account in the context of the company's overall financial performance

and market trends, as with any financial analysis (Grandenetti, 2022). To make wise decisions

about their investment in the firm, stakeholders and investors should carefully examine the

company's financial statements, management's plan, and market conditions.

The financial health and performance of Zoom Video Communications, Inc. during this

time period were solid, according to the examination of the financial ratios for the years 2021

and 2022. With a current ratio and quick ratio above 1, the company demonstrated better

liquidity, demonstrating its capacity to meet short-term obligations without primarily relying on

inventory. As a result of less reliance on debt financing and a healthier financial position, Zoom's

debt-to-equity ratio decreased. Higher ROE, gross profit margin, operating profit margin, and

ROA all reflect the company's increased profitability (Apps, 2023). The company's potential to

produce larger earnings per share is also demonstrated by the significant growth in EPS.

Overall, these encouraging financial indications imply that Zoom Video

Communications, Inc. effectively managed its assets and business activities over the past two

years (Haldar & Rasay, 2023). A full analysis, including future projections and industry

comparisons, should be done before making any investment decisions because the financial

health of any organization can be influenced by a variety of internal and external factors.
 20

References

Apps, B. O. (2023). Zoom Revenue and Usage Statistics . Retrieved from

https://www.businessofapps.com/data/zoom-statistics/

Grandinetti, J. (2022). Zoom and higher education. Retrieved from

https://firstmonday.org/ojs/index.php/fm/article/view/11655/10604

Haider, A., & Rasay, S. J. (2020). Zoom's massive growth amid COVID-19 set to continue after

pandemic, analysts say. S&P Global Market Intelligence. Retrieved from

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/

zoom-s-massive-growth-amid-covid-19-set-to-continue-after-pandemic-analysts-say-

58907516

IBSINDIA. (2021). Zoom`s Rise Amidst the COVID-19 Pandemic. Center for Management

Research. Retrieved from https://www.icmrindia.org/casestudies/catalogue/Business

%20Strategy/zooms-rise-amidst-excerpts.htm#Business%20Model%20of%20Zoom

Iqbal, M. (2023). Zoom Revenue and Usage Statistics (2023). Zoom Revenue and Usage

Statistics (2023). Retrieved from https://www.businessofapps.com/data/zoom-statistics/

Mustapha, L. K. (2022). The Financial Impact of COVID-19 on video communication sector.

Journal of Contemporary Research in Business Administration and Economic Sciences,

01(04), 81-94. Retrieved from http://www.jcrbaes.press/

Putri, I. J., & Siregar, S. L. (2022). IMPACT OF COVID-19 ON ZOOM VIDEO

COMMUNICATIONS INC STOCK PRICE. Dinasti International Journal of Digital

Business Management, 03(05), 783-789. Retrieved from

https://doi.org/10.31933/dijdbm.v3i5
 21

Wikipedia. (2023). Zoom Video Communications. Retrieved from

https://en.wikipedia.org/wiki/Zoom_Video_Communications

Zoom Video Communications, I. (2023). U.S. Securities and Exchange Commission. Retrieved

from https://www.sec.gov/ix?doc=/Archives/edgar/data/1585521/000158552123000035/

zm-20230131.htm
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APPEDIX

ZOOM VIDEO COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Year Ended January 31,
2022 2021 2020
Revenue $ 4,099,864 $ 2,651,368 $ 6
Cost of revenue 1,054,554 821,989 1
Gross profit 3,045,310 1,829,379 5
Operating expenses:
Research and development 362,990 164,080
Sales and marketing 1,135,959 684,904 3
General and administrative 482,770 320,547
Total operating expenses 1,981,719 1,169,531 4
Income from operations 1,063,591 659,848
Gains on strategic investments, net 43,761 2,538
Other (expense) income, net (5,720) 15,648
Income before (benefit from) provision for income taxes 1,101,632 678,034
(Benefit from) provision for income taxes (274,007) 5,718
Net income 1,375,639 672,316
Undistributed earnings attributable to participating securities (582) (789)
Net income attributable to common stockholders $ 1,375,057 $ 671,527 $
Net income per share attributable to common stockholders:
Basic $ 4.64 $ 2.37 $
Diluted $ 4.50 $ 2.25 $
Weighted-average shares used in computing net
income per share attributable to common
stockholders:
Basic 296,334,894 283,853,654 233,6
Diluted 305,826,505 298,127,669 254,2
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CONSOLIDATE
D BALANCE
SHEETS
As of January 31,
20222021
Assets

(in thousands, except share and per share data)

Current assets:
Cash and cash equivalents $ 1,062,820 $ 2,
Marketable securities 4,356,446 2,
Accounts receivable, net of allowances of $24,696 and $36,844 as of January 31, 2022 and 2021, respectively 419,673
Deferred contract acquisition costs, current 199,266
Prepaid expenses and other current assets 145,602
Total current assets 6,183,807 4,
Deferred contract acquisition costs, noncurrent 164,714
Property and equipment, net 222,354
Operating lease right-of-use assets 95,965
Strategic investments 367,814
Goodwill 27,607
Deferred tax assets 382,296
Other assets, noncurrent 106,761
Total assets $ 7,551,318 $ 5,
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 7,841 $
Accrued expenses and other current liabilities 430,415
Deferred revenue, current 1,141,435
Total current liabilities 1,579,691 1,
Deferred revenue, noncurrent 38,481
Operating lease liabilities, noncurrent 85,018
Other liabilities, noncurrent 68,110
Total liabilities 1,771,300 1,
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 200,000,000 shares authorized as of January 31, 2022 and 2021; zero shares issued and
outstanding as of January 31, 2022 and 2021 —
Common stock, $0.001 par value per share, 2,000,000,000 Class A shares authorized as of January 31, 2022 and 2021; 247,044,454
and 215,737,924 shares issued and outstanding as of January 31, 2022 and 2021, respectively; 300,000,000 Class B shares authorized
as of January 31, 2022 and 2021; 51,993,351 and 77,811,299 shares issued and outstanding as of January 31, 2022 and 2021,
respectively 299
Additional paid-in capital 3,749,514 3,
Accumulated other comprehensive (loss) income (17,902)
Retained earnings 2,048,107
Total stockholders’ equity 5,780,018 3,
Total liabilities and stockholders’ equity $ 7,551,318 $ 5,