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Zoom Video Communications Gross Profit

: $987 Mil (TTM As of Jul. 2020)
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Zoom Video Communications's gross profit for the three months ended in Jul. 2020 was $471 Mil. Zoom Video Communications's gross profit for the trailing twelve months (TTM) ended in Jul. 2020 was $987 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Zoom Video Communications's gross profit for the three months ended in Jul. 2020 was $471 Mil. Zoom Video Communications's Revenue for the three months ended in Jul. 2020 was $664 Mil. Therefore, Zoom Video Communications's Gross Margin % for the quarter that ended in Jul. 2020 was 71.02%.

Zoom Video Communications had a gross margin of 71.02% for the quarter that ended in Jul. 2020 => Durable competitive advantage

During the past 4 years, the highest Gross Margin % of Zoom Video Communications was 81.54%. The lowest was 73.31%. And the median was 80.58%.


Zoom Video Communications Gross Profit Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Zoom Video Communications Annual Data
Jan17 Jan18 Jan19 Jan20
Gross Profit 48.35 120.70 269.52 507.26

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 117.93 135.75 155.70 224.46 471.25

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Zoom Video Communications Gross Profit Distribution

* The bar in red indicates where Zoom Video Communications's Gross Profit falls into.



Zoom Video Communications Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Zoom Video Communications's Gross Profit for the fiscal year that ended in Jan. 2020 is calculated as

Gross Profit (A: Jan. 2020 )=Revenue - Cost of Goods Sold
=622.658 - 115.396
=507

Zoom Video Communications's Gross Profit for the quarter that ended in Jul. 2020 is calculated as

Gross Profit (Q: Jul. 2020 )=Revenue - Cost of Goods Sold
=663.52 - 192.271
=471

Gross Profit for the trailing twelve months (TTM) ended in Jul. 2020 was 135.748 (Oct. 2019 ) + 155.704 (Jan. 2020 ) + 224.46 (Apr. 2020 ) + 471.249 (Jul. 2020 ) = $987 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Zoom Video Communications's Gross Margin % for the quarter that ended in Jul. 2020 is calculated as

Gross Margin % (Q: Jul. 2020 )=Gross Profit (Q: Jul. 2020 ) / Revenue (Q: Jul. 2020 )
=(Revenue - Cost of Goods Sold) / Revenue
=471 / 663.52
=71.02 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Zoom Video Communications  (NAS:ZM) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Zoom Video Communications had a gross margin of 71.02% for the quarter that ended in Jul. 2020 => Durable competitive advantage


Zoom Video Communications Gross Profit Related Terms


Zoom Video Communications Gross Profit Headlines

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