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Zoom Video Communications Inc. reported quarterly sales and profit that exceeded analysts' estimates, driven by strong corporate customer retention and a strategic push into artificial intelligence. CEO Eric Yuan highlighted the company's innovation and robust profitability, noting a significant 24.1% increase in free cash flow year over year to $1,471.9 million for the full fiscal year, achieving a free cash flow margin of 32.5%. The company's stock surged by over 13% in after-hours trading amid its AI push. Detailed financial results showed a 2.6% year-over-year increase in total revenue to $1.146 billion, with enterprise revenue growing by 4.9% to $667.3 million, despite a slight 0.5% decrease in online revenue to $479.2 million. The gross margin improved to 75.9%, up 223 basis points year over year. The company also reported an 81% increase in free cash flow to $333 million for the quarter, with a cash balance of approximately $7 billion and a 9.8% increase in customers generating over $100,000 in trailing twelve months revenue to 3,810.
