Month: August 2021

• Second quarter total revenue of $1,021.5 million, up 54% year over year
• Number of customers contributing more than $100,000 in TTM revenue up 131% year over year
• Second quarter GAAP operating margin of 28.8% and non-GAAP operating margin of 41.6%

SAN JOSE, Calif., Aug. 30, 2021 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM) is updating this press release to include the “Amortization on marketable securities” line item in its condensed consolidated statements of cash flows. Complete corrected text follows.

Zoom Video Communications, Inc. (NASDAQ: ZM) today announced financial results for the second fiscal quarter ended July 31, 2021.

“In Q2, we achieved our first billion dollar revenue quarter while delivering strong profitability and cash flow,” said Zoom founder and CEO, Eric S. Yuan. “Q2 also marked several milestones on our expansion beyond the UC platform. We launched Zoom Apps, bringing over 50 apps directly into the Zoom experience, and Zoom Events, an all-in-one digital events service. Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organizations and individuals as they look to reimagine work, communications, and collaboration.”

Second Quarter Fiscal Year 2022 Financial Highlights:

• Revenue: Total revenue for the second quarter was $1,021.5 million, up 54% year over year.
• Income from Operations and Operating Margin: GAAP income from operations for the second quarter was $294.6 million, up from $188.1 million in the second quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and expenses related to charitable donation of common stock, non-GAAP income from operations for the second quarter was $424.7 million, up from $277.0 million in the second quarter of fiscal year 2021. For the second quarter, GAAP operating margin was 28.8% and non-GAAP operating margin was 41.6%.
• Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the second quarter was $316.9 million, or $1.04 per share, up from $185.7 million, or $0.63 per share in the second quarter of fiscal year 2021.Non-GAAP net income for the quarter was $415.1 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, gains on strategic investments, undistributed earnings attributable to participating securities, and expenses related to charitable donation of common stock. Non-GAAP net income per share was $1.36. In the second quarter of fiscal year 2021, non-GAAP net income was $274.8 million, or $0.92 per share.
• Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2021 was $5.1 billion.
• Cash Flow: Net cash provided by operating activities was $468.0 million for the second quarter, compared to $401.3 million in the second quarter of fiscal year 2021. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $455.0 million, compared to $373.4 million in the second quarter of fiscal year 2021.

Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2022, Zoom had:

• 2,278 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 131% from the same quarter last fiscal year.
• Approximately 504,900 customers with more than 10 employees, up approximately 36% from the same quarter last fiscal year.
• A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 13th consecutive quarter.

Financial Outlook: Zoom is providing the following guidance for its third quarter fiscal year 2022 and its full fiscal year 2022.

• Third Quarter Fiscal Year 2022: Total revenue is expected to be between $1.015 billion and $1.020 billion and non-GAAP income from operations is expected to be between $340.0 million and $345.0 million. Non-GAAP diluted EPS is expected to be between $1.07 and $1.08 with approximately 309 million non-GAAP weighted average shares outstanding.
• Full Fiscal Year 2022: Total revenue is expected to be between $4.005 billion and $4.015 billion. Non-GAAP income from operations is expected to be between $1.500 billion and $1.510 billion. Non-GAAP diluted EPS is expected to be between $4.75 and $4.79 with approximately 308 million non-GAAP weighted average shares outstanding.

Additional information on Zoom’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom’s results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Zoom’s investor relations website at investors.zoom.us.

Zoom Video Earnings Call
Zoom will host a Zoom Video Webinar for investors on August 30, 2021 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results and business highlights. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/

About Zoom
Zoom is for you. We help you express ideas, connect to others, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since. That is why we are an intuitive, scalable, and secure choice for large enterprises, small businesses, and individuals alike. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Visit zoom.com and follow @zoom.

Forward-Looking Statements
This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter of fiscal year 2022 and full fiscal year 2022, Zoom’s growth strategy and business aspirations to support organizations and people on multiple fronts as they look to reimagine work, communications and collaboration. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements, including: declines in new customers and hosts, renewals or upgrades, difficulties in evaluating our prospects and future results of operations given our limited operating history, competition from other providers of communications platforms, continued uncertainty regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry thereto, including the potential effect on our user growth rate once the impact of the COVID-19 pandemic tapers, particularly as a vaccine becomes widely available, and users return to work or school or are otherwise no longer subject to shelter-in-place mandates, as well as the impact of COVID-19 on the overall economic environment, any or all of which will have an impact on demand for remote work solutions for businesses as well as overall distributed, face-to-face interactions and collaboration using Zoom, delays or outages in services from our co-located data centers, and failures in internet infrastructure or interference with broadband access which could cause current or potential users to believe that our systems are unreliable. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission (the “SEC”), including our quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2021. Forward-looking statements speak only as of the date the statements are made and are based on information available to Zoom at the time those statements are made and/or management’s good faith belief as of that time with respect to future events.  Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures
Zoom has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Zoom uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Zoom’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Zoom’s condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Zoom’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Non-GAAP Income From Operations and Non-GAAP Operating Margins. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, and litigation settlements, net. Zoom excludes stock-based compensation expense and expenses related to charitable donation of common stock because they are non-cash in nature and excluding these expenses provides meaningful supplemental information regarding Zoom’s operational performance and allows investors the ability to make more meaningful comparisons between Zoom’s operating results and those of other companies. Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom’s operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business. Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period. Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business. In particular, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses and assist in the comparison with the results of other companies in the industry.

Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted. Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, as GAAP net income attributable to common stockholders and GAAP net income per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, litigation settlements, net, gains on strategic investments, and undistributed earnings attributable to participating securities. Zoom excludes gains on strategic investments because given the size and volatility in the ongoing adjustments to the valuation of our strategic investments, we believe that excluding these gains or losses facilitates a more meaningful evaluation of our operational performance. Zoom excludes undistributed earnings attributable to participating securities because they are considered by management to be outside of Zoom’s core operating results, and excluding them provides investors and management with greater visibility to the underlying performance of Zoom’s business operations, facilitates comparison of its results with other periods and may also facilitate comparison with the results of other companies in the industry.

In order to calculate non-GAAP net income per share, basic and diluted, Zoom uses a non-GAAP weighted-average share count. Zoom defines non-GAAP weighted-average shares used to compute non-GAAP net income per share, basic and diluted, as GAAP weighted average shares used to compute net income per share attributable to common stockholders, basic and diluted, adjusted to reflect the common stock issued in connection with the IPO, including the concurrent private placement, that are outstanding as of the end of the period as if they were outstanding as of the beginning of the period for comparability.

Free Cash Flow. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

Customer Metrics
Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size (including a distinct unit of an organization) that has multiple paid hosts.

Zoom calculates net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from all customers with more than 10 employees as of 12 months prior (“Prior Period ARR”). Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. We then calculate the ARR from these customers as of the current period end (“Current Period ARR”), which includes any upsells, contraction, and attrition. Zoom divides the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Press Relations

Colleen Rodriguez
Global Public Relations Lead for Zoom
press@zoom.us

Investor Relations

Tom McCallum
Head of Investor Relations for Zoom
investors@zoom.us

Zoom Video Communications, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

‫

		As of
		July 31, 2021				January 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	1,931,370			$	2,240,303
Marketable securities		3,174,029				2,004,410
Accounts receivable, net		395,266				294,703
Deferred contract acquisition costs, current		162,126				136,630
Prepaid expenses and other current assets		172,288				116,819
Total current assets		5,835,079				4,792,865
Deferred contract acquisition costs, noncurrent		154,971				157,262
Property and equipment, net		193,852				149,924
Operating lease right-of-use assets		91,087				97,649
Strategic investments		137,795				18,668
Goodwill		26,247				24,340
Other assets, noncurrent		69,562				57,285
Total assets		$	6,508,593			$	5,297,993
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	49,762			$	8,664
Accrued expenses and other current liabilities		482,162				393,018
Deferred revenue, current		1,154,449				858,284
Total current liabilities		1,686,373				1,259,966
Deferred revenue, noncurrent		23,579				25,211
Operating lease liabilities, noncurrent		83,009				90,415
Other liabilities, noncurrent		57,884				61,634
Total liabilities		1,850,845				1,437,226
Stockholders’ equity:
Preferred stock		—				—
Common stock		296				292
Additional paid-in capital		3,440,222				3,187,168
Accumulated other comprehensive income		147				839
Retained earnings		1,217,083				672,468
Total stockholders’ equity		4,657,748				3,860,767
Total liabilities and stockholders’ equity		$	6,508,593			$	5,297,993

Note: The amount of unbilled accounts receivable included within accounts receivable, net on the condensed consolidated balance sheets was $35.4 million and $24.6 million as of July 31, 2021 and January 31, 2021, respectively.

Zoom Video Communications, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share amounts)

		Three Months Ended July 31,										Six Months Ended July 31,
		2021					2020					2021					2020
Revenue		$	1,021,495				$	663,520				$	1,977,732				$	991,687
Cost of revenue		261,256					192,271					526,250					295,978
Gross profit		760,239					471,249					1,451,482					695,709
Operating expenses:
Research and development		82,311					42,734					147,486					69,123
Sales and marketing		271,179					159,173					516,846					280,729
General and administrative		112,146					81,238					266,235					134,368
Total operating expenses		465,636					283,145					930,567					484,220
Income from operations		294,603					188,104					520,915					211,489
Gains on strategic investments		32,076					—					32,076					2,538
Interest income and other, net		(2,795		)			2,081					(176		)			5,333
Income before provision for income taxes		323,884					190,185					552,815					219,360
Provision for income taxes		6,800					4,196					8,200					6,296
Net income		317,084					185,989					544,615					213,064
Undistributed earnings attributable to participating securities		(154		)			(247		)			(309		)			(305		)
Net income attributable to common stockholders		$	316,930				$	185,742				$	544,306				$	212,759
Net income per share attributable to common stockholders:
Basic		$	1.07				$	0.66				$	1.85				$	0.76
Diluted		$	1.04				$	0.63				$	1.78				$	0.72
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic		295,712,675					282,850,805					294,769,619					281,394,901
Diluted		305,861,051					297,162,309					305,652,628					296,408,229

Zoom Video Communications, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

		Three Months Ended July 31,										Six Months Ended July 31,
		2021					2020					2021					2020
Cash flows from operating activities:
Net income		$	317,084				$	185,989				$	544,615				$	213,064
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense		102,142					56,855					201,111					85,632
Amortization of deferred contract acquisition costs		41,626					24,494					79,392					40,781
Gains on strategic investments		(32,076		)			—					(32,076		)			(2,538		)
Charitable donation of common stock		—					22,312					—					23,312
Provision for accounts receivable allowances		10,537					11,091					14,592					14,959
Depreciation and amortization		12,028					6,475					22,691					11,814
Non-cash operating lease cost		4,359					2,349					8,633					4,597
Amortization on marketable securities		7,041					947					12,637					1,190
Other		(6		)			(36		)			264					838
Changes in operating assets and liabilities:
Accounts receivable		(41,594		)			(54,425		)			(117,259		)			(196,926		)
Prepaid expenses and other assets		(27,395		)			(4,649		)			(57,370		)			(53,729		)
Deferred contract acquisition costs		(54,784		)			(88,936		)			(102,597		)			(213,790		)
Accounts payable		42,368					9,115					43,960					10,871
Accrued expenses and other liabilities		5,153					34,744					93,809					202,066
Deferred revenue		85,740					196,287					296,636					519,149
Operating lease liabilities, net		(4,211		)			(1,266		)			(7,724		)			(979		)
Net cash provided by operating activities		468,012					401,346					1,001,314					660,311
Cash flows from investing activities:
Purchases of marketable securities		(669,136		)			(277,336		)			(2,094,587		)			(484,882		)
Maturities of marketable securities		500,859					150,324					791,906					287,338
Sales of marketable securities		119,569					10,284					119,569					36,897
Purchases of property and equipment		(12,975		)			(27,981		)			(92,049		)			(35,253		)
Purchases of strategic investments		(80,400		)			—					(86,900		)			(13,000		)
Cash paid for acquisition, net of cash acquired		(2,121		)			(26,486		)			(2,121		)			(26,486		)
Purchase of intangible assets		—					(1,332		)			—					(1,494		)
Other		—					—					—					1,319
Net cash used in investing activities		(144,204		)			(172,527		)			(1,364,182		)			(235,561		)
Cash flows from financing activities:
Proceeds from issuance of common stock for employee stock purchase plan		37,846					20,760					37,846					20,760
Proceeds from employee equity transactions to be remitted to employees and tax authorities, net		28,884					15,925					18,900					234,465
Proceeds from exercise of stock options		4,653					7,831					8,021					17,417
Other		—					—					337					—
Net cash provided by financing activities		71,383					44,516					65,104					272,642
Net increase (decrease) in cash, cash equivalents, and restricted cash		395,191					273,335					(297,764		)			697,392
Cash, cash equivalents, and restricted cash – beginning of period		1,600,161					758,139					2,293,116					334,082
Cash, cash equivalents, and restricted cash – end of period		$	1,995,352				$	1,031,474				$	1,995,352				$	1,031,474

Zoom Video Communications, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, in thousands, except share and per share amounts)

		Three Months Ended July 31,										Six Months Ended July 31,
		2021					2020					2021					2020
GAAP income from operations		$	294,603				$	188,104				$	520,915				$	211,489
Adjustments:
Stock-based compensation expense and related payroll taxes		116,742					61,602					221,117					91,848
Litigation settlements, net		—					—					66,916					—
Acquisition-related expenses		13,320					4,942					16,604					4,942
Charitable donation of common stock		—					22,312					—					23,312
Non-GAAP income from operations		$	424,665				$	276,960				$	825,552				$	331,591
GAAP net income attributable to common stockholders		$	316,930				$	185,742				$	544,306				$	212,759
Adjustments:
Stock-based compensation expense and related payroll taxes		116,742					61,602					221,117					91,848
Litigation settlements, net		—					—					66,916					—
Gains on strategic investments		(32,076		)			—					(32,076		)			—
Acquisition-related expenses		13,320					4,942					16,604					4,942
Charitable donation of common stock		—					22,312					—					23,312
Undistributed earnings attributable to participating securities		154					247					309					305
Non-GAAP net income		$	415,070				$	274,845				$	817,176				$	333,166
Net income per share – basic and diluted:
GAAP net income per share – basic		$	1.07				$	0.66				$	1.85				$	0.76
Non-GAAP net income per share – basic		$	1.40				$	0.97				$	2.77				$	1.18
GAAP net income per share – diluted		$	1.04				$	0.63				$	1.78				$	0.72
Non-GAAP net income per share – diluted		$	1.36				$	0.92				$	2.67				$	1.12
GAAP and non-GAAP weighted-average shares used to compute net income per share – basic		295,712,675					282,850,805					294,769,619					281,394,901
GAAP and non-GAAP weighted-average shares used to compute net income per share – diluted		305,861,051					297,162,309					305,652,628					296,408,229
Net cash provided by operating activities		$	468,012				$	401,346				$	1,001,314				$	660,311
Less:
Purchases of property and equipment		(12,975		)			(27,981		)			(92,049		)			(35,253		)
Free cash flow (non-GAAP)		$	455,037				$	373,365				$	909,265				$	625,058
Net cash used in investing activities		$	(144,204	)			$	(172,527	)			$	(1,364,182	)			$	(235,561	)
Net cash provided by financing activities		$	71,383				$	44,516				$	65,104				$	272,642

 

SHANGHAI, China, Aug. 31, 2021 (GLOBE NEWSWIRE) — Junshi Biosciences (HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies, announced its financial results for the six months ended June 30, 2021 and provided corporate updates.

First Half 2021 Financial Highlights

• Total revenue reached RMB 2,114 million in the first half of 2021, representing an increase of 268% compared to the corresponding period of 2020. The increase was mainly due to the growth of revenue from out-licensing income.
• Total research and development (“R&D”) expenses were RMB 947 million in the first half of 2021, representing an increase of 34% compared to the corresponding period of 2020. The increase in R&D expenses was mainly due to increased investment in in-house R&D projects, expansion of innovative R&D fields, and a greater number of R&D collaborations and license-in activities.
• Profits in the first half of 2021 were RMB 11 million compared to a loss of RMB 598 million in the corresponding period of 2020. The turnaround in profit was mainly due to significant increase in revenue.
• Net cash from operating activities was RMB 48 million for the six months ended June 30, 2021. Net cash from financing activities was RMB2,028 million during the period, which was mainly due to the successful placing of new H shares with net proceeds of approximately RMB 2,106 million in June 2021.
• As of June 30, 2021, we had cash and cash equivalents of RMB 4,269 million as compared to the RMB 3,385 million as of December 31, 2020. The increase was mainly due to funds raised from the aforementioned stock offering and cash inflow from operations.

Business Highlights
During the six months ended June 30, 2021, we have achieved significant progress with respect to our product commercialization, clinical trials and pipeline expansion. Our innovative R&D field has expanded from monoclonal antibodies to the development of more drug modalities, including small molecules, polypeptides, antibody drug conjugates (ADCs), bi-specific or multi-specific antibodies and nucleic acid drugs, as well as the exploration of next-generation innovative therapies for cancer and autoimmune diseases. Our drug candidates cover 5 major therapeutic categories including malignant tumors, autoimmune diseases, chronic metabolic diseases, neurologic diseases, and infectious diseases. Currently, we have 2 commercialized products (toripalimab and etesevimab), one filed NDA (adalimumab), 16 drug candidates under clinical trials (among which senaparib, ongericimab and bevacizumab were in Phase III trials) and 25 drug candidates in pre-clinical drug development.

• In January 2021, toripalimab for the first-line treatment of mucosal melanoma was granted the Fast Track Designation by the United States Food and Drug Administration (the “FDA”). Meanwhile, the FDA also approved the Investigational New Drug (“IND”) application for a global Phase III clinical trial of toripalimab in combination with axitinib for the first-line treatment of mucosal melanoma. In March 2021, the indication was granted Breakthrough Therapy Designation (“BTD”) by the National Medical Products Administration (the “NMPA”) of China.
• In February 2021, we entered into an exclusive license and commercialization agreement with Coherus BioSciences, Inc. (“Coherus”). Pursuant to the agreement, we granted Coherus an exclusive license for toripalimab and two option programs in the United States and Canada (the “Coherus Territory”), as well as the rights of first negotiation for 2 early-stage checkpoint inhibitor antibodies, and may receive an aggregate of up to US$1.11 billion in upfront payments, exercise fees and milestone payments. Coherus paid us an upfront payment of US$150 million.
• In February 2021, the supplemental new drug application (“sNDA”) for toripalimab in combination with cisplatin and gemcitabine as the first-line treatment for patients with locally recurrent or metastatic nasopharyngeal carcinoma (“NPC”) was accepted by the NMPA.
• In February 2021, the sNDA for toripalimab for the treatment of patients with recurrent or metastatic NPC after failure of at least two lines of prior systemic therapy was granted conditional approval by the NMPA.
• In January and February 2021, TAB006/JS006 (specific anti-TIGIT monoclonal antibody) received IND approval from the NMPA and the FDA, respectively.
• In February 2021, the FDA granted Eli Lilly and Company (“Lilly”), our partner, an Emergency Use Authorization (“EUA”) for etesevimab (JS016/LY-CoV016) 1,400 mg and bamlanivimab (LY-CoV555) 700 mg together.
• In February 2021, the IND applications for JS110 (XPO1 inhibitor) and JS111 (EGFR exon20 insertion and other uncommon mutation inhibitor) jointly developed by Wigen Biomedicine Technology (Shanghai) Co., Ltd. and us were accepted by the NMPA. They were subsequently approved in April 2021.
• In February 2021, the IND application for our drug candidate JS201 (anti-PD-1/TGF-β bifunctional fusion protein) was accepted by the NMPA and was later approved in May 2021. In July 2021, the dosing of the first patient was completed in a Phase I clinical trial (NCT04956926).
• In February 2021, we entered into an exclusive promotion agreement with AstraZeneca Pharmaceutical Co., Ltd. (“AstraZeneca”), pursuant to which we granted AstraZeneca the exclusive promotion right of toripalimab for the urinary cancer indications to be approved subsequently in mainland China and the exclusive promotion right for all indications approved and to be approved in non-core urban areas. We will continue to be responsible for the promotion of other indications approved and to be approved, excluding urinary cancer indications in core urban areas.
• In March 2021, we initiated the rolling submission of a Biologics License Application (“BLA”) for toripalimab to the FDA for the treatment of recurrent or metastatic NPC, and obtained a rolling review.
• In March 2021, the IND application for our drug candidate JS103 (pegylated uricase derivative) was accepted by the NMPA. It was later approved in May 2021.
• In March 2021, the IND application for our drug candidate JS007 (anti-CTLA-4 monoclonal antibody) was accepted by the NMPA. It was later approved in June 2021.
• In April 2021, the sNDA for toripalimab for the treatment of patients with locally advanced or metastatic urothelial carcinoma (“UC”) who failed platinum-containing chemotherapy or progressed within 12 months of neoadjuvant or adjuvant platinum-containing chemotherapy was granted conditional approval by the NMPA.
• In April 2021, the Independent Data Monitoring Committee (IDMC) determined that toripalimab in combination with paclitaxel/cisplatin as the first-line treatment for patients with advanced or metastatic esophageal squamous cell carcinoma (“ESCC”) had reached its pre-specified primary endpoints of Progression Free Survival (“PFS”) and Overall Survival (“OS”) at the interim analysis of a randomized, double-blind, placebo-controlled, multi-center, Phase III clinical study “JUPITER-06 study” (NCT03829969). In July 2021, the sNDA for toripalimab in combination with platinum-containing chemotherapy as the first-line treatment for patients with locally advanced or metastatic ESCC was accepted by the NMPA.
• In June 2021, the IND application for our drug candidate JS014 (recombinant IL-21 – a nanobody fusion protein of anti-human serum albumin (HSA)) was accepted by the NMPA.
• In August 2021, the IND application for our drug candidate UBP1213sc (recombinant humanized anti-B lymphocyte stimulator (BLyS) monoclonal antibody) was accepted by the NMPA.

We expanded our product pipeline through forming joint ventures with our partners and other means. Apart from developing drug candidates on our own technology platforms, we also actively collaborated with outstanding domestic and overseas biotechnology companies to further expand our product pipeline, deploy next-generation innovative drug technology platforms and augment drug combination therapies.

• In July 2021, we entered into an agreement with Immorna (Hangzhou) Biotechnology Co., Ltd. (“Immorna”) to jointly create a new company. The newly created company will mainly engage in R&D and commercialization of products in the fields of tumors, infectious diseases, rare diseases and other diseases on the mRNA technology platform globally. Upon its formation, 50% of the new company will be owned by Junshi Biosciences and 50% by Immorna.

In June 2021, we issued an aggregate of 36,549,200 new H shares at the placing price of HK$70.18 per H share to no less than six placees (the “Placing”). The net proceeds from the Placing are approximately RMB 2,106 million. The proceeds from the Placing are intended for increased R&D, expansion of the commercialization team, domestic and overseas investments, mergers and acquisitions, business development, and general corporate purposes.

About Junshi Biosciences
Founded in December 2012, Junshi Biosciences is an innovation-driven biopharmaceutical company dedicated to the discovery, development and commercialization of innovative therapeutics. The Company has established a diversified R & D pipeline comprising 44 drug candidates, with five therapeutic focus areas covering cancer, autoimmune, metabolic, neurological, and infectious diseases. Junshi Biosciences was the first Chinese pharmaceutical company that obtained marketing approval for an anti-PD-1 monoclonal antibody in China. Its first-in-human anti-BTLA antibody for solid tumors was the first in the world to be approved for clinical trials by the FDA and NMPA and its anti-PCSK9 monoclonal antibody was the first in China to be approved for clinical trials by the NMPA. In early 2020, Junshi Biosciences joined forces with the Institute of Microbiology of Chinese Academy of Science and Eli Lilly to co-develop JS016 (etesevimab), China’s first neutralizing fully human monoclonal antibody against SARS-CoV-2. JS016 administered with bamlanivimab has obtained the EUA in more than 12 countries and regions worldwide. The JS016 program is a part of our continuous innovation for disease control and prevention of the global pandemic. Junshi Biosciences has over 2,500 employees in the United States (San Francisco and Maryland) and China (Shanghai, Suzhou, Beijing and Guangzhou). For more information, please visit: http://junshipharma.com.

Contact Information

IR Team:
Junshi Biosciences
info@junshipharma.com
+86 021-2250 0300

Solebury Trout
Bob Ai
bai@soleburytrout.com
+1 646-389-6658

PR Team:
Junshi Biosciences
Zhi Li
zhi_li@junshipharma.com
+86 021-6105 8800

• Second quarter total revenue of $1,021.5 million, up 54% year over year
• Number of customers contributing more than $100,000 in TTM revenue up 131% year over year
• Second quarter GAAP operating margin of 28.8% and non-GAAP operating margin of 41.6%

SAN JOSE, Calif., Aug. 30, 2021 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM) today announced financial results for the second fiscal quarter ended July 31, 2021.

“In Q2, we achieved our first billion dollar revenue quarter while delivering strong profitability and cash flow,” said Zoom founder and CEO, Eric S. Yuan. “Q2 also marked several milestones on our expansion beyond the UC platform. We launched Zoom Apps, bringing over 50 apps directly into the Zoom experience, and Zoom Events, an all-in-one digital events service. Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organizations and individuals as they look to reimagine work, communications, and collaboration.”

Second Quarter Fiscal Year 2022 Financial Highlights:

• Revenue: Total revenue for the second quarter was $1,021.5 million, up 54% year over year.
• Income from Operations and Operating Margin: GAAP income from operations for the second quarter was $294.6 million, up from $188.1 million in the second quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and expenses related to charitable donation of common stock, non-GAAP income from operations for the second quarter was $424.7 million, up from $277.0 million in the second quarter of fiscal year 2021. For the second quarter, GAAP operating margin was 28.8% and non-GAAP operating margin was 41.6%.
• Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the second quarter was $316.9 million, or $1.04 per share, up from $185.7 million, or $0.63 per share in the second quarter of fiscal year 2021.Non-GAAP net income for the quarter was $415.1 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, gains on strategic investments, undistributed earnings attributable to participating securities, and expenses related to charitable donation of common stock. Non-GAAP net income per share was $1.36. In the second quarter of fiscal year 2021, non-GAAP net income was $274.8 million, or $0.92 per share.
• Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2021 was $5.1 billion.
• Cash Flow: Net cash provided by operating activities was $468.0 million for the second quarter, compared to $401.3 million in the second quarter of fiscal year 2021. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $455.0 million, compared to $373.4 million in the second quarter of fiscal year 2021.

Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2022, Zoom had:

• 2,278 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 131% from the same quarter last fiscal year.
• Approximately 504,900 customers with more than 10 employees, up approximately 36% from the same quarter last fiscal year.
• A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 13th consecutive quarter.

Financial Outlook: Zoom is providing the following guidance for its third quarter fiscal year 2022 and its full fiscal year 2022.

• Third Quarter Fiscal Year 2022: Total revenue is expected to be between $1.015 billion and $1.020 billion and non-GAAP income from operations is expected to be between $340.0 million and $345.0 million. Non-GAAP diluted EPS is expected to be between $1.07 and $1.08 with approximately 309 million non-GAAP weighted average shares outstanding.
• Full Fiscal Year 2022: Total revenue is expected to be between $4.005 billion and $4.015 billion. Non-GAAP income from operations is expected to be between $1.500 billion and $1.510 billion. Non-GAAP diluted EPS is expected to be between $4.75 and $4.79 with approximately 308 million non-GAAP weighted average shares outstanding.

Additional information on Zoom’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom’s results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Zoom’s investor relations website at investors.zoom.us.

Zoom Video Earnings Call
Zoom will host a Zoom Video Webinar for investors on August 30, 2021 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results and business highlights. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/

About Zoom
Zoom is for you. We help you express ideas, connect to others, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since. That is why we are an intuitive, scalable, and secure choice for large enterprises, small businesses, and individuals alike. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Visit zoom.com and follow @zoom.

Forward-Looking Statements
This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter of fiscal year 2022 and full fiscal year 2022, Zoom’s growth strategy and business aspirations to support organizations and people on multiple fronts as they look to reimagine work, communications and collaboration. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements, including: declines in new customers and hosts, renewals or upgrades, difficulties in evaluating our prospects and future results of operations given our limited operating history, competition from other providers of communications platforms, continued uncertainty regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry thereto, including the potential effect on our user growth rate once the impact of the COVID-19 pandemic tapers, particularly as a vaccine becomes widely available, and users return to work or school or are otherwise no longer subject to shelter-in-place mandates, as well as the impact of COVID-19 on the overall economic environment, any or all of which will have an impact on demand for remote work solutions for businesses as well as overall distributed, face-to-face interactions and collaboration using Zoom, delays or outages in services from our co-located data centers, and failures in internet infrastructure or interference with broadband access which could cause current or potential users to believe that our systems are unreliable. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission (the “SEC”), including our quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2021. Forward-looking statements speak only as of the date the statements are made and are based on information available to Zoom at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures
Zoom has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Zoom uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Zoom’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Zoom’s condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Zoom’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Non-GAAP Income From Operations and Non-GAAP Operating Margins. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, and litigation settlements, net. Zoom excludes stock-based compensation expense and expenses related to charitable donation of common stock because they are non-cash in nature and excluding these expenses provides meaningful supplemental information regarding Zoom’s operational performance and allows investors the ability to make more meaningful comparisons between Zoom’s operating results and those of other companies. Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom’s operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business. Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period. Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business. In particular, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses and assist in the comparison with the results of other companies in the industry.

Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and Diluted. Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, as GAAP net income attributable to common stockholders and GAAP net income per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, litigation settlements, net, gains on strategic investments, and undistributed earnings attributable to participating securities. Zoom excludes gains on strategic investments because given the size and volatility in the ongoing adjustments to the valuation of our strategic investments, we believe that excluding these gains or losses facilitates a more meaningful evaluation of our operational performance. Zoom excludes undistributed earnings attributable to participating securities because they are considered by management to be outside of Zoom’s core operating results, and excluding them provides investors and management with greater visibility to the underlying performance of Zoom’s business operations, facilitates comparison of its results with other periods and may also facilitate comparison with the results of other companies in the industry.

In order to calculate non-GAAP net income per share, basic and diluted, Zoom uses a non-GAAP weighted-average share count. Zoom defines non-GAAP weighted-average shares used to compute non-GAAP net income per share, basic and diluted, as GAAP weighted average shares used to compute net income per share attributable to common stockholders, basic and diluted, adjusted to reflect the common stock issued in connection with the IPO, including the concurrent private placement, that are outstanding as of the end of the period as if they were outstanding as of the beginning of the period for comparability.

Free Cash Flow. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

Customer Metrics
Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size (including a distinct unit of an organization) that has multiple paid hosts.

Zoom calculates net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from all customers with more than 10 employees as of 12 months prior (“Prior Period ARR”). Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. We then calculate the ARR from these customers as of the current period end (“Current Period ARR”), which includes any upsells, contraction, and attrition. Zoom divides the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Press Relations

Colleen Rodriguez
Global Public Relations Lead for Zoom
press@zoom.us

Investor Relations

Tom McCallum
Head of Investor Relations for Zoom
investors@zoom.us

Zoom Video Communications, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)