Zoom Video Communications (NAS:ZM) Pretax Margin %

: 21.99% (As of Jul. 2023)

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Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Zoom Video Communications's Pre-Tax Income for the three months ended in Jul. 2023 was $250 Mil. Zoom Video Communications's Revenue for the three months ended in Jul. 2023 was $1,139 Mil. Therefore, Zoom Video Communications's pretax margin for the quarter that ended in Jul. 2023 was 21.99%.

The historical rank and industry rank for Zoom Video Communications's Pretax Margin % or its related term are showing as below:

ZM' s Pretax Margin % Range Over the Past 10 Years
Min: -2.32 Med: 4.23 Max: 26.87
Current: 6.92

ZM's Pretax Margin % is ranked better than
64.57% of 2780 companies
in the Software industry
Industry Median: 1.54 vs ZM: 6.92

Zoom Video Communications Pretax Margin % Historical Data

The historical data trend for Zoom Video Communications's Pretax Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Zoom Video Communications Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Pretax Margin %

2.53

4.23

25.57

26.87

5.67

Zoom Video Communications Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
Pretax Margin %																8.22	4.97	-3.54	3.91	21.99

Zoom Video Communications Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Zoom Video Communications's Pretax Margin for the fiscal year that ended in Jan. 2023 is calculated as

Pretax Margin	=	Pre-Tax Income (A: Jan. 2023 )	/	Revenue (A: Jan. 2023 )
	=	249.276	/	4392.96
	=	5.67 %

Zoom Video Communications's Pretax Margin for the quarter that ended in Jul. 2023 is calculated as

Pretax Margin	=	Pre-Tax Income (Q: Jul. 2023 )	/	Revenue (Q: Jul. 2023 )
	=	250.373	/	1138.676
	=	21.99 %

Zoom Video Communications (NAS:ZM) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.

Zoom Video Communications Pretax Margin % Related Terms

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Zoom Video Communications (NAS:ZM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (NAS:ZM) » Definitions » Pretax Margin %

Comparable Companies

Traded in Other Exchanges

ZM:Mexico 5ZM:Germany Z1OM34:Brazil ZOOM:Austria

Address

55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113

Website

https://www.zoom.com

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Executives

Cindy L Hoots	director	C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb	officer: President	650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
William R Mcdermott	director	2225 LAWSON LANE, SANTA CLARA CA 95054
Santiago Subotovsky	director	C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Janet Napolitano	director	C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Shane Crehan	officer: Chief Accounting Officer	C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam	officer: Pres. of Engineering & Product	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Herbert Raymond Mcmaster	director	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Michael Saul Abramson	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Ryan Azus	officer: Chief Revenue Officer	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Bonus Goal International Ltd	10 percent owner	C/O 7/F, CHEUNG KONG CENTER, 2 QUEEN'S ROAD CENTRAL, HONG KONG K3 00000
Salesforce Com Inc	10 percent owner	SALESFORCE TOWER, 415 MISSION STREET 3RD FL, SAN FRANCISCO CA 94105
Sequoia Capital Global Growth Ii Principals Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Qualcomm Inc/de	10 percent owner	5775 MOREHOUSE DR, SAN DIEGO CA 92121