Tag Archives: Communications

Following ‘unexpected loss’ NASA says Orion spacecraft communications restored

NASA said Wednesday that communications with the Orion spacecraft has been restored following an “unexpected loss.”

In a blog post, the agency wrote that NASA’s Mission Control Center at the Johnson Space Center in Houston, Texas, unexpectedly lost data to and from Orion at 12:09 a.m. CST for 47 minutes.

The loss occurred while reconfiguring the communication link between Orion and Deep Space Network overnight.

“The reconfiguration has been conducted successfully several times in the last few days, and the team is investigating the cause of the loss of signal,” NASA wrote.

NASA SPACE CAPSULE ROUNDS THE MOON

The team resolved the issue with a reconfiguration on the ground side.

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“Engineers are examining data from the event to help determine what happened, and the command and data handling officer will be downlinking data recorded onboard Orion during the outage to include in that assessment,” NASA said.

JAMES WEBB SPACE TELESCOPE HELPS RESEARCHERS UNCOVER EARLY GALAXIES IN ‘NEW CHAPTER IN ASTRONOMY’

It said there was no impact to Orion and that it remains in a healthy configuration.

This hiccup comes following hydrogen leaks and other delays ahead of the Artemis I launch of the Space Launch System rocket.

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The rocket and uncrewed Orion capsule lifted off from the Kennedy Space Center early on Nov. 16.

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Watch SpaceX launch a new communications satellite Tuesday (Nov. 22)

Update for 9:30 pm ET: SpaceX has postponed the launch of the Eutelsat 10B satellite by 24 hours, to no earlier than Tuesday, Nov. 22, to allow more time for additional checks on the mission’s Falcon 9 rocket. Liftoff remains set for 9:57 p.m. EST (0257 Nov. 23 GMT). The delay means the launch will now liftoff about 6 hours after SpaceX’s launch of a new Dragon cargo ship to the International Space Station for NASA.


SpaceX is launching a communications satellite for airplane and sea Internet services, and you can watch the event life.

SpaceX will use a Falcon 9 rocket to launch the Eutelsat 10B mission on behalf of Eutelsat Tuesday (Nov. 22) at 9:57 p.m. EST (0257 on Nov. 23 GMT). Live coverage will be available here at Space.com, courtesy of SpaceX, about 15 minutes before the liftoff.

The mission will launch from Cape Canaveral Space Force Station in coastal Florida; the Falcon 9 rocket’s first stage is expected to touch down on a nearby drone ship, stationed in the Atlantic Ocean, roughly 10 minutes after liftoff. This will be the 11th launch for this Falcon 9 first stage, according to SpaceX.

“The Falcon 9 first stage booster supporting this mission previously launched Telstar 18 Vantage, Iridium-8 and eight Starlink missions,” SpaceX officials wrote of the rocket. (Starlink is SpaceX’s broadband Internet series of satellites, with more than 3,000 currently active in orbit.)

In pictures: The evolution of SpaceX rockets

During the launch, Eutelsat 10B will be placed into a geostationary transfer orbit to make its way to a geosynchronous orbit, meaning that it will orbit the Earth in such a way to consistently gaze at one part of the planet below.

Eutelsat 10B will include a high-capacity communications payload in the Ku-band “in the busiest air and sea traffic zones” over the North Atlantic, Europe, the Mediterranean basin and the Middle East, Eutelsat officials wrote (opens in new tab) of the mission. A second Ku-band payload will be available for the Atlantic Ocean, Africa and the Indian Ocean.

The satellite also carries two widebeam C- and Ku-band payloads for existing customers upon Eutelsat 10A, Eutelsat officials stated. The new satellite will replace the 12-year-old Eutelsat 10A, which is expected to enter its end of service in 2023 for customers in the Americas and Asia.

Elizabeth Howell is the co-author of “Why Am I Taller (opens in new tab)?” (ECW Press, 2022; with Canadian astronaut Dave Williams), a book about space medicine. Follow her on Twitter @howellspace (opens in new tab). Follow us on Twitter @Spacedotcom (opens in new tab) or Facebook (opens in new tab).



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Atlas V rocket launches 2 communications satellites to orbit

An Atlas V rocket lifted off Tuesday evening (Oct. 4) from Florida’s Space Coast, carrying two commercial communications satellites to orbit.

The Atlas V, topped with the twin SES-20 and SES-21 spacecraft, launched Tuesday at 5:36 p.m. EDT (2136 GMT) from Cape Canaveral Space Force Station.

The 196-foot-tall (60 meters) rocket hit all of its marks early. It jettisoned its three solid rocket boosters about 2 minutes after liftoff as planned, for example, and discarded its payload fairing, which protected the two satellites during launch, about 1.5 minutes later. And the Atlas V’s two stages separated at about T+4.5 minutes.

Related: The history of rockets

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But there’s quite a bit of work left to do, for the rocket’s Centaur upper stage still needs to power itself to the deployment destinations for SES-20 and SES-21 — near-circular, near-geosynchronous orbits high above Earth. 

If all goes according to plan, SES-20 will be deployed about 5 hours and 40 minutes after liftoff, and SES-21 will follow suit roughly 40 minutes later. The two spacecraft will then use their onboard propulsion systems to circularize their orbits, which will send them zooming around Earth about 22,300 miles (35,900 kilometers) above the equator, according to a ULA mission description (opens in new tab).

Once the satellites are established in those orbits and have been through a checkout period, SES-20 and SES-21 can begin doing what they were built to do — provide television broadcasting service across the United States for the Luxembourg telecom company SES.

“Built by Boeing with thousands of narrow and steerable beams and the ability to isolate interference sources, the two spacecraft provide SES and future customers the ability to expand, extend or even change a satellite’s coverage area and mission throughout its life,” ULA representatives wrote in the mission description.

“Proven hardware coupled with next-generation technology created an affordable and lightweight spacecraft, enabling two satellites to launch on a single rocket,” they added.

The Atlas V launch is part of a busy week in spaceflight. For example, SpaceX plans to launch the Crew-5 astronaut mission for NASA and another batch of the company’s Starlink internet satellites on two separate missions on Wednesday (Oct. 5), as well as two telecom satellites for the company Intelsat on Thursday (Oct. 6).

Three other missions are on tap for Thursday (Oct. 6) as well, including a Rocket Lab launch that will send to orbit a satellite built by the energy and technology firm General Atomics. 

Editor’s note: This story was updated at 6:15 p.m. EDT on Oct. 4 with news of successful liftoff.

Mike Wall is the author of “Out There (opens in new tab)” (Grand Central Publishing, 2018; illustrated by Karl Tate), a book about the search for alien life. Follow him on Twitter @michaeldwall (opens in new tab). Follow us on Twitter @Spacedotcom (opens in new tab) or on Facebook (opens in new tab).  



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Meadows texts reveal direct White House communications with pro-Trump operative behind plans to seize voting machines

In relaying the news to Meadows, Waldron said the decision would allow opponents to engage in “delay tactics” preventing Waldron and his associates from immediately accessing machines. Waldron also characterized Arizona as “our lead domino we were counting on to start the cascade,” referring to similar efforts in other states like Georgia.

“Pathetic,” Meadows responded.

The messages, which have not been previously reported, shed new light on how Waldron’s reach extended into the highest levels of the White House and the extent to which Meadows was kept abreast of plans for accessing voting machines, a topic sources tell CNN, and court documents suggest, is of particular interest to state and federal prosecutors probing efforts to overturn the 2020 election.

The messages also provide an early window into how an effort to gain access to voting machines through the courts and state legislatures morphed into a more clandestine endeavor that is now the subject of multiple criminal investigations. Despite attempts to distance himself from the more dubious attempts to keep Trump in office, the messages underscore how Meadows was an active participant, engaging with someone who former White House officials have described as a fringe outsider peddling outlandish ideas.
Waldron, a retired Army colonel with ties to Trump’s one-time national security adviser Michael Flynn, has emerged as a key figure in the broader scheme to overturn the election and was the architect of several extreme proposals for doing so. That includes sending Meadows a PowerPoint presentation outlining a plan for overturning the election, which was later used to brief Republican lawmakers, titled, in part: “Options for 6 Jan.”
Waldron also helped draft language for an executive order directing the Pentagon and Department of Homeland Security to seize voting machines on behalf of the White House.

Trump never signed the order, siding with White House lawyers who insisted the idea was legally perilous. But there is evidence that his closest allies, including Meadows, continued to entertain similar pitches from Waldron in the lead-up to January 6 as they sought to validate conspiracy theories about foreign election interference.

Criminal prosecutors in Georgia are demanding Waldron and Meadows testify as part of ongoing grand jury investigation into efforts to overturn the 2020 election results there. Waldron is also engaged in a months-long legal fight with the January 6 Committee, which has subpoenaed his cellphone data. Meadows recently complied with a Justice Department subpoena to hand over information pertaining to the 2020 election including these text messages.

Recent subpoenas from the Justice Department related to the same probe indicate investigators are seeking information about claims of election fraud and efforts to persuade government officials to “change or affect” the election results, “or delay certification of the results,” according to one subpoena obtained by CNN, exactly the kinds of activities Waldron is known to have engaged in.

Waldron and his attorneys did not respond to several requests for comment. Meadows’ attorney also did not respond to CNN’s request for comment.

‘Chasing election machines for years’

Before he retired from the Army as a colonel in 2017, Waldron specialized in psychological operations and worked alongside Michael Flynn at the Defense Intelligence Agency, according to his military records.

In numerous interviews, people familiar with Waldron’s background tell CNN that for years he has been obsessed with the idea that US voting machines are vulnerable to foreign hacking. “Waldron had been chasing election machines for years,” said one former US official with knowledge of his efforts.

It wasn’t until Trump started falsely claiming that the election had been stolen from him that Waldron had a chance to put his theories to use. Trump’s inner circle was warned by several Republican lawmakers that without evidence of fraud, their plan to subvert the Electoral College would almost certainly fail, text messages obtained by the House Select Committee investigating the US Capitol attack show.

In the days after the election, Waldron quickly emerged as one of the Trump legal team’s favorite “expert witnesses” on election fraud. He was a near constant presence during Giuliani’s road show in the weeks after the election when he and his team of Trump lawyers traveled around the country to convince state officials that the outcome had been tainted by widespread voter fraud.

During one December 2020 hearing in Georgia, Waldron appeared alongside Giuliani and conservative attorney John Eastman, where he pushed unfounded claims about Dominion voting machines and similarly alleged that fraudulent ballots had tainted the election results.

Those familiar with his role in the effort also described Waldron as being in charge of “operational planning” and working directly with Rudy Giuliani on gaining access to voting systems in states where Trump lost.

“Waldron was responsible for planning and overseeing execution” of efforts to access voting systems,” said one of those sources.

That was especially true in Antrim County, Michigan, where Waldron and his team of pro-Trump operatives gained access to voting systems there in late 2020 — producing a since-debunked report based on their findings that Trump repeatedly held-up as proof of election fraud even after it was dismissed by his own top advisers.

The Antrim County breach is now the subject of a criminal investigation by authorities in Michigan. Among those under investigation are Matthew DePerno, the Republican nominee to become Michigan’s attorney general, and a number of people Waldron worked with after the 2020 election, including Doug Logan, the CEO of Cyber Ninjas.

Arizona audit

As Trump’s lawyers worked to enlist sympathetic state and local officials to help keep Trump in office, Waldron often served as a key liaison, according to emails and text messages obtained by the group American Oversight and shared with CNN. That was particularly true in Arizona, where Waldron was in direct communication with a number of GOP state officials and lawmakers about producing evidence of fraud.

In the weeks before his December 23 text to Meadows, Waldron exchanged nearly a dozen emails with state GOP officials in Arizona, discussing various plans for gaining access to voting systems or ballots from certain counties and pitching himself to analyze the election data for evidence of fraud, according to the documents reviewed by CNN.
On December 11, Waldron sent an email to three Arizona state GOP lawmakers who were pushing to overturn the election, suggesting a member of his team could “take a hard drive” to county elections offices, upload relevant voter data and “get the files to us.”

“This would be the fastest and most transparent way to give you the direct evidence you need to either pursue or close the issue,” he wrote, referring to ongoing efforts to upend the election results in Arizona.

“We are happy to consult with you to answer questions or coordinate a ‘way ahead,'” Waldron added.

Two days later, Waldron’s attorney and business associate, Charles Bundren, sent one of those same Arizona lawmakers draft language for subpoenas seeking electronically stored voting information. The document is nearly identical to subpoenas Arizona state Republicans ultimately filed demanding election officials hand over voting machines, emails obtained by the group American Oversight and provided to CNN show.

After an Arizona judge ultimately rejected those subpoenas on December 23, Waldron reached out to Meadows about the decision, according to the newly revealed text messages.

Waldron texted Meadows again on December 28, 2020, suggesting a member of his team had analyzed election data from “several counties” and pointing to two specific examples of what he called the “Southern steal” — an apparent reference to voting irregularities that, he alleged, had changed the election outcome in those localities.

“OK,” Meadows responded, acknowledging Waldron’s message.

Ongoing efforts

It remains unclear if there are additional texts between Waldron and Meadows beyond the messages exchanged on December 23 and December 28, in part because both men have sought to block the January 6 committee from obtaining their cellphone data.

Over the past year, Trump allies have continued to push baseless claims about widespread fraud and sought access to voting systems in various states. Waldron has remained a central figure in that effort.

Emails obtained by CNN connect Waldron directly to the 2021 partisan audit in Maricopa County, Arizona. After his work in Antrim County, Michigan, Waldron pushed GOP state officials in Arizona to hire his team to conduct the audit. But Arizona officials expressed concerns after Waldron’s Antrim County report was thoroughly debunked.
Instead, with Waldron’s endorsement, they hired Cyber Ninjas to conduct the Maricopa audit, which ultimately proved that Biden won the county. Waldron remained heavily involved, emails obtained by CNN show. It’s unclear whether Waldron was paid for his work as Arizona Republicans have fought to keep that information from coming out publicly. Emails have emerged that show contractors connected to Waldron were paid hundreds of thousands of dollars by America Voting Rights Foundation, a Trump-affiliated PAC created last summer.

Over the past year, Waldron was also listed as a key participant for a series of “election integrity” planning sessions involving other notable Trump allies like Flynn and MyPillow CEO Mike Lindell.

Lindell and another known associate of Waldron, Conan Hayes, are subjects of a separate FBI investigation focused on an election system breach in Colorado.

In April, Waldron sued the House January 6 committee to block their efforts to obtain his cellphone data. Waldron’s own lawyer, Charles Bundren, has taken steps to shield his own communications from the committee.

Court documents show that Bundren stepped aside as Waldron’s primary attorney in the case against the committee last month and joined the lawsuit as a co-plaintiff, arguing the panel is seeking cellphone data that could expose the breadth of his own contacts with others involved in efforts to overturn the 2020 election.

Bundren did not respond to several requests for comment.

CNN’s Jamie Gangel contributed to this report.

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NBC News: Monkeypox chiefly transmitted through sex between men, suggests CDC update communications strategy

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Editor’s Note: The following report contains graphic language about the sexual transmission of monkeypox.

NBC News poked a hole in the public health narrative that skin-to-skin contact, rather than sex between men, was the chief transmitter of monkeypox in a report on Wednesday, and quoted scientists urging the Centers for Disease Control to update its communications on the infectious disease.

NBC’s Benjamin Ryan reported that growing evidence in recent weeks “has suggested that experts may have framed monkeypox’s typical transmission route precisely backward.”

“Since the outset of the global monkeypox outbreak in May, public health and infectious disease experts have told the public that the virus is largely transmitting through skin-to-skin contact, in particular during sex between men,” NBC reported. “Now, however, an expanding cadre of experts has come to believe that sex between men itself — both anal as well as oral intercourse — is likely the main driver of global monkeypox transmission. The skin contact that comes with sex, these experts say, is probably much less of a risk factor.”

DOG INFECTED WITH MONKEYPOX AFTER SHARING BED, LICKING OWNERS

Accurate information on the highest-risk behavior for transmission is crucial, as it plays into recommendations on isolation, infection risk and other factors. It cited studies finding the virus in semen, with one scientist remarking a “growing body of evidence supports that sexual transmission, particularly through seminal fluids, is occurring with the current MPX outbreak.”

A staff member of the Westchester Medical Center applies a monkeypox vaccine to a person in a drive-through monkeypox vaccination point at the Westchester Medical Center in Valhalla, New York, U.S., July 28, 2022. 
(REUTERS/Eduardo Munoz)

Among the other evidence cited for the claim was the disease’s prevalence among men aged 18-44 (more than 75 percent of global cases), and the majority of cases occurring in the anorectal or genital areas, suggesting sexual transmission when the virus is first passed along.

“Consequently, scientists told NBC News that the Centers for Disease Control and Prevention and other public health authorities should update their monkeypox communication strategies to more strongly emphasize the centrality of intercourse among gay and bisexual men, who comprise nearly all U.S. cases, to the virus’ spread,” NBC reported.

A Medium blog cited in NBC by Drs. Lao-Tzu Allan-Blitz and Jeffrey D. Klausner found strong evidence that monkeypox is a sexually transmitted disease. 

“…the temporal and anatomic association with various sex practices, the high prevalence of sexual risk behavior among patients with human monkeypox, and the in vitro infectivity of human monkeypox DNA isolated from semen strongly suggest that human monkeypox is transmitted through sexual activity,” they wrote, while fretting over the potential “stigma” of labeling it an STI.

A greyhound has contracted monkeypox in the first confirmed case of human-to-pet infection.

WHO TO RENAME MONKEYPOX TO AVOID DISCRIMINATION AND STIGMATIZATION

“Conversely, failure to appropriately identify and disseminate to the public the predominant mode of transmission will likely perpetuate behaviors that are driving transmission,” they wrote.

The World Health Organization pushed back, though, with its technical director claiming “we don’t know yet” how monkeypox chiefly transmits.

The CDC’s guidelines on monkeypox currently state, “Monkeypox can spread to anyone through close, personal, often skin-to-skin contact, including, “Direct contact with monkeypox rash, scabs, or body fluids from a person with monkeypox,” “Touching objects, fabrics (clothing, bedding, or towels), and surfaces that have been used by someone with monkeypox,” and “Contact with respiratory secretions.”

A registered nurse prepares a dose of a monkeypox vaccine at the Salt Lake County Health Department Thursday, July 28, 2022, in Salt Lake City. 
((AP Photo/Rick Bowmer, File))

The report comes as the CDC, a public punching bag for more than two years over its controversial handling of the coronavirus pandemic, undergoes a reorganization ordered by director Dr. Rochelle Walensky.

“For 75 years, CDC and public health have been preparing for COVID-19, and in our big moment, our performance did not reliably meet expectations,” she said in a statement obtained this week by The Washington Post. “My goal is a new, public health action-oriented culture at CDC that emphasizes accountability, collaboration, communication, and timeliness.”

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Fox News’ Stephen Sorace contributed to this report.

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White House communications director Kate Bedingfield stepping down

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President Biden’s communications director Kate Bedingfield is departing the White House later this month, Fox News confirmed, and will continue to remain a “critical player in moving the Biden agenda forward from the outside.”

A White House aide told Fox News that Bedingfield will depart at the end of the month to spend more time with her young children and her husband, who also is a veteran of the Biden administration and campaign.

The aide told Fox News that Bedingfield will help to support Biden and the Biden administration from the outside.

WASHINGTON, DC – MAY 13: Former White House Press Secretary Jen Psaki (L) and White House Communications Director Kate Bedingfield (R) wait for President Joe Biden to deliver remarks on the COVID-19 response and vaccination program in the Rose Garden of the White House on May 13, 2021 in Washington, DC.  Psaki left her post earlier this year; Bedingfield is due to depart soon.
(Photo by Alex Wong/Getty Images)

WHITE HOUSE BRACING FOR STAFF DEPARTURES AHEAD OF MIDTERMS

“Without Kate Bedingfield’s talent and tenacity, Donald Trump might still be in the White House, the Rescue Plan and the Infrastructure Law might still be unrealized goals, and Kentaji Brown Jackson might not be sitting on the Supreme Court,” White House chief of staff Ron Klain said. “She has played a huge role in everything the President has achieved – from his second term as Vice President, through the campaign, and since coming to the White House.”

“Her strategic acumen, intense devotion to the President’s agenda, and fierce work on his behalf are unmatched,” Klain said. 

He added: “She will continue to remain a critical player in moving the Biden agenda forward from the outside.”

Bedingfield is a longtime, loyal Biden adviser, according to the aide, who served as his communications director while he was vice president.

KAMALA HARRIS STAFF EXODUS: DEPUTY CHIEF OF STAFF MICHAEL FUCHS QUITS

Bedingfield also was deputy campaign manager for communications in the 2020 cycle, before becoming the White House communications director.

White House Director of Communications Kate Bedingfield speaks during a press briefing at the White House in Washington, U.S., March 30, 2022. 
(REUTERS/Kevin Lamarque)

Bedingfield’s departure comes after White House Rapid Response Director Mike Gwin left the White House last month. Gwin is now at the Treasury Department as deputy assistant secretary for public affairs. 

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Bedingfield’s departure also comes after White House press secretary Jen Psaki left the administration in May for a role with MSNBC. 

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Zoom Video Communications Reports Financial Results for the First Quarter of Fiscal Year 2023

  • First quarter total revenue of $1,073.8 million, up 12% year over year
  • First quarter GAAP operating margin of 17.4% and non-GAAP operating margin of 37.2%
  • First quarter net cash provided by operating activities of $526.2 million, a 49.0% margin
  • Number of customers contributing more than $100,000 in trailing 12 months revenue up 46% year over year

SAN JOSE, Calif., May 23, 2022 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM), today announced financial results for the first fiscal quarter ended April 30, 2022.

“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers,” said Zoom founder and CEO, Eric S. Yuan. “Additionally in Q1, we delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter. We also maintained strong profitability and cash flow, including 17% in GAAP operating margin, approximately 37% non-GAAP operating margin, approximately 49% operating cash flow margin, and over 46% adjusted free cash flow margin.”

First Quarter Fiscal Year 2023 Financial Highlights:

  • Revenue: Total revenue for the first quarter was $1,073.8 million, up 12% year over year.
  • Income from Operations and Operating Margin: GAAP income from operations for the first quarter was $187.1 million, compared to GAAP income from operations of $226.3 million in the first quarter of fiscal year 2022. After adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the first quarter was $399.6 million, compared to non-GAAP income from operations of $400.9 million in the first quarter of fiscal year 2022. For the first quarter, GAAP operating margin was 17.4% and non-GAAP operating margin was 37.2%.
  • Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the first quarter was $113.6 million, or $0.37 per share, compared to GAAP net income attributable to common stockholders of $227.4 million, or $0.74 per share in the first quarter of fiscal year 2022.

    Non-GAAP net income for the first quarter was $315.8 million, after adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, losses on strategic investments, net, acquisition-related expenses, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.03. In the first quarter of fiscal year 2022, non-GAAP net income was $402.1 million, or $1.32 per share.

  • Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2022 was $5.7 billion.
  • Cash Flow: Net cash provided by operating activities was $526.2 million for the first quarter, compared to $533.3 million in the first quarter of fiscal year 2022. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $501.1 million, compared to $454.2 million in the first quarter of fiscal year 2022.

Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the first quarter of fiscal year 2023, Zoom had:

  • Approximately 198,900 Enterprise customers, up 24% from the same quarter last fiscal year.
  • A trailing 12-month net dollar expansion rate for Enterprise customers of 123%.
  • 2,916 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 46% from the same quarter last fiscal year.

Financial Outlook: Zoom is providing the following guidance for its second quarter fiscal year 2023 and its full fiscal year 2023.

  • Second Quarter Fiscal Year 2023: Total revenue is expected to be between $1.115 billion and $1.120 billion and non-GAAP income from operations is expected to be between $360.0 million and $365.0 million. Non-GAAP diluted EPS is expected to be between $0.90 and $0.92 with approximately 308 million non-GAAP weighted average shares outstanding.
  • Full Fiscal Year 2023: Total revenue is expected to be between $4.530 billion and $4.550 billion. Full fiscal year non-GAAP income from operations is expected to be between $1.480 billion and $1.500 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $3.70 and $3.77 with approximately 309 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 May 23, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results, business highlights and financial outlook. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/

About Zoom

Zoom is for you. Zoom is a space where you can connect to others, share ideas, make plans, 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 Zoom’s financial outlook for the second quarter of fiscal year 2023 and full fiscal year 2023, Zoom’s market position, opportunities, and growth strategy, product initiatives and go-to market motions and the expected benefits resulting from the same, and market trends. 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 as the impact of the COVID-19 pandemic tapers, particularly as users return to work or school or are otherwise no longer subject to limitations on in-person meetings, 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, failures in internet infrastructure or interference with broadband access which could cause current or potential users to believe that our systems are unreliable, market volatility, and global security concerns and their potential impact on regional and global economies and supply chains. 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 annual report on Form 10-K for the fiscal year ended January 31, 2022. 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 Margin. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net. Zoom excludes stock-based compensation expense because it is non-cash in nature and excluding this expense 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, acquisition-related expenses, gains/losses on strategic investments, net, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Zoom excludes gains on strategic investments, net 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 income tax benefits from discrete activities, including the income tax benefit related to the release of the US federal and state valuation allowance, because of their nonrecurring nature. 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.

Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom defines adjusted free cash flow as free cash flow plus litigation settlement payments, net. Zoom adds back litigation settlement payments, net because they are not part of Zoom’s ongoing operating activities, and the consideration of measures that exclude such payments can assist in the comparison of cash generated from operations in different periods which may or may not include such payments and assist in the comparison with the results of other companies in the industry. Zoom considers free cash flow and adjusted free cash flow to be liquidity measures that provide 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 defines Enterprise customers as distinct business units who have been engaged by either Zoom’s direct sales team, channel partners or independent software vendor partners.

Zoom calculates net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from Enterprise customers 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. Zoom calculates ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. Zoom then calculates the ARR from these Enterprise 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.

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Colleen RodriguezHead of Global Public Relations and Executive Communications
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Tom McCallumHead of Investor Relations
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Zoom Video Communications, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

    As of
    April 30,
2022
  January 31,
2022
Assets   (unaudited)    
Current assets:        
Cash and cash equivalents   $ 1,407,305     $ 1,062,820  
Marketable securities     4,318,974       4,356,446  
Accounts receivable, net     483,879       419,673  
Deferred contract acquisition costs, current     211,575       199,266  
Prepaid expenses and other current assets     142,545       145,602  
Total current assets     6,564,278       6,183,807  
Deferred contract acquisition costs, noncurrent     161,315       164,714  
Property and equipment, net     240,611       222,354  
Operating lease right-of-use assets     92,036       95,965  
Strategic investments     343,160       367,814  
Goodwill     27,607       27,607  
Deferred tax assets     419,979       382,296  
Other assets, noncurrent     107,727       106,761  
Total assets   $ 7,956,713     $ 7,551,318  
Liabilities and stockholders’ equity        
Current liabilities:        
Accounts payable   $ 22,506     $ 7,841  
Accrued expenses and other current liabilities     500,101       430,415  
Deferred revenue, current     1,286,403       1,141,435  
Total current liabilities     1,809,010       1,579,691  
Deferred revenue, noncurrent     44,644       38,481  
Operating lease liabilities, noncurrent     80,201       85,018  
Other liabilities, noncurrent     74,971       68,110  
Total liabilities     2,008,826       1,771,300  
         
Stockholders’ equity:        
Preferred stock            
Common stock     299       299  
Additional paid-in capital     3,831,060       3,749,514  
Accumulated other comprehensive loss     (45,237 )     (17,902 )
Retained earnings     2,161,765       2,048,107  
Total stockholders’ equity     5,947,887       5,780,018  
Total liabilities and stockholders’ equity   $ 7,956,713     $ 7,551,318  

Note: The amount of unbilled accounts receivable included within accounts receivable, net on the condensed consolidated balance sheets was $68.6 million and $59.7 million as of April 30, 2022 and January 31, 2022, respectively.

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

    Three Months Ended April 30,
      2022       2021  
Revenue   $ 1,073,800     $ 956,237  
Cost of revenue     261,821       264,994  
Gross profit     811,979       691,243  
Operating expenses:        
Research and development     144,291       65,175  
Sales and marketing     362,783       245,667  
General and administrative     117,840       154,089  
Total operating expenses     624,914       464,931  
Income from operations     187,065       226,312  
Losses on strategic investments, net     (36,404 )      
Other (expense) income, net     (6,989 )     2,619  
Income before provision for income taxes     143,672       228,931  
Provision for income taxes     30,014       1,400  
Net income     113,658       227,531  
Undistributed earnings attributable to participating securities     (18 )     (148 )
Net income attributable to common stockholders   $ 113,640     $ 227,383  
         
Net income per share attributable to common stockholders:        
Basic   $ 0.38     $ 0.77  
Diluted   $ 0.37     $ 0.74  
Weighted-average shares used in computing net income per share attributable to common stockholders:        
Basic     299,147,105       293,794,778  
Diluted     306,614,220       305,412,419  

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

    Three Months Ended April 30,
      2022       2021  
Cash flows from operating activities:        
Net income   $ 113,658     $ 227,531  
Adjustments to reconcile net income to net cash provided by operating activities:        
Stock-based compensation expense     209,363       98,969  
Amortization of deferred contract acquisition costs     56,780       37,766  
Losses on strategic investments, net     36,404        
Depreciation and amortization     15,280       10,663  
Provision for accounts receivable allowances     13,097       4,055  
Non-cash operating lease cost     5,451       4,274  
Amortization on marketable securities     3,604       5,596  
Other     12,730       270  
Changes in operating assets and liabilities:        
Accounts receivable     (83,605 )     (75,665 )
Prepaid expenses and other assets     (27,235 )     (29,975 )
Deferred contract acquisition costs     (65,690 )     (47,813 )
Accounts payable     11,153       1,592  
Accrued expenses and other liabilities     78,236       88,656  
Deferred revenue     152,974       210,896  
Operating lease liabilities, net     (6,049 )     (3,513 )
Net cash provided by operating activities     526,151       533,302  
Cash flows from investing activities:        
Purchases of marketable securities     (611,662 )     (1,425,451 )
Maturities of marketable securities     609,327       291,047  
Purchases of property and equipment     (25,038 )     (79,074 )
Purchases of strategic investments     (11,750 )     (6,500 )
Purchases of intangible assets     (3,211 )      
Net cash used in investing activities     (42,334 )     (1,219,978 )
Cash flows from financing activities:        
Cash paid for repurchases of common stock     (132,412 )      
Proceeds from employee equity transactions remitted to employees and tax authorities, net     (4,086 )     (9,984 )
Proceeds from exercise of stock options     3,255       3,368  
Other           337  
Net cash used in financing activities     (133,243 )     (6,279 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (9,425 )      
Net increase (decrease) in cash, cash equivalents, and restricted cash     341,149       (692,955 )
Cash, cash equivalents, and restricted cash – beginning of period     1,073,353       2,293,116  
Cash, cash equivalents, and restricted cash – end of period   $ 1,414,502     $ 1,600,161  

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

    Three Months Ended April 30,
      2022       2021  
GAAP income from operations   $ 187,065     $ 226,312  
Add:        
Stock-based compensation expense and related payroll taxes     212,862       104,375  
Litigation settlements, net     (4,226 )     66,916  
Acquisition-related expenses     3,934       3,284  
Non-GAAP income from operations   $ 399,635     $ 400,887  
GAAP operating margin     17.4 %     23.7 %
Non-GAAP operating margin     37.2 %     41.9 %
         
GAAP net income attributable to common stockholders   $ 113,640     $ 227,383  
Add:        
Stock-based compensation expense and related payroll taxes     212,862       104,375  
Litigation settlements, net     (4,226 )     66,916  
Losses on strategic investments, net     36,404        
Acquisition-related expenses     3,934       3,284  
Undistributed earnings attributable to participating securities     18       148  
Tax effects on non-GAAP adjustments     (46,846 )      
Non-GAAP net income   $ 315,786     $ 402,106  
         
Net income per share – basic and diluted:        
GAAP net income per share – basic   $ 0.38     $ 0.77  
Non-GAAP net income per share – basic   $ 1.06     $ 1.37  
GAAP net income per share – diluted   $ 0.37     $ 0.74  
Non-GAAP net income per share – diluted   $ 1.03     $ 1.32  
         
GAAP and non-GAAP weighted-average shares used to compute net income per share – basic     299,147,105       293,794,778  
GAAP and non-GAAP weighted-average shares used to compute net income per share – diluted     306,614,220       305,412,419  
         
Net cash provided by operating activities   $ 526,151     $ 533,302  
Less: Purchases of property and equipment     (25,038 )     (79,074 )
Free cash flow (non-GAAP)   $ 501,113     $ 454,228  
Add: Litigation settlement payments, net            
Adjusted free cash flow (non-GAAP)   $ 501,113     $ 454,228  
Net cash used in investing activities   $ (42,334 )   $ (1,219,978 )
Net cash used in financing activities   $ (133,243 )   $ (6,279 )
Operating cash flow margin (GAAP)     49.0 %     55.8 %
Adjusted free cash flow margin (non-GAAP)     46.7 %     47.5 %

 

Source: Zoom Video Communications, Inc.

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Mark Meadows’ 2,319 text messages reveal Trump’s inner circle communications before and after January 6

The never-before-seen texts include messages from Trump’s family — daughter Ivanka Trump, son-in-law Jared Kushner and son Donald Trump Jr. — as well as White House and campaign officials, Cabinet members, Republican Party leaders, January 6 rally organizers, Rudy Giuliani, My Pillow CEO Mike Lindell, Sean Hannity and other Fox hosts. There are also text exchanges with more than 40 current and former Republican members of Congress, including Sen. Ted Cruz of Texas and Reps. Jim Jordan of Ohio, Mo Brooks of Alabama and Marjorie Taylor Greene of Georgia.

The texts include everything from plans to fight the election results to surprising and unexpected reactions on January 6 from some of Trump’s staunchest allies. At 2:28 p.m., Greene, the conservative firebrand who had helped to plan the congressional objections that day, texted Meadows with an urgent plea for help as the violence was unfolding at the Capitol.

“Mark I was just told there is an active shooter on the first floor of the Capitol Please tell the President to calm people This isn’t the way to solve anything,” Greene wrote. Meadows does not appear to reply.

More messages flooded in.

“Mark: he needs to stop this, now. Can I do anything to help?” Mick Mulvaney, Trump’s former acting White House chief of staff, texted Meadows.

“It’s really bad up here on the hill. They have breached the Capitol,” Georgia Republican Rep. Barry Loudermilk wrote.

“The president needs to stop this ASAP,” texted GOP Rep. William Timmons of South Carolina.

“POTUS is engaging,” Meadows sent in response to Loudermilk. “We are doing it,” he texted to Timmons.

“Thanks. This doesn’t help our cause,” Loudermilk replied.

Shortly after, Donald Trump Jr. weighed in: “This his(sic) one you go to the mattresses on. They will try to fuck his entire legacy on this if it gets worse.”

“TELL THEM TO GO HOME !!!” texted Trump’s first chief of staff, Reince Priebus.

Heated rhetoric and conspiracy theories

The text messages CNN obtained begin on Election Day, November 3, 2020. Even before the election was called, Meadows was inundated with conspiracy theories about election fraud, strategies to challenge the results and pleas for Trump to keep fighting. The messages — from GOP activists, donors, Republican members of Congress and state party officials — appear to act as an echo chamber affirming Trump’s false claims that the election was stolen. For months leading up to Election Day, Trump had claimed the only way he could lose was if the election was rigged.
Previously disclosed text messages showed that former Trump administration Energy Secretary Rick Perry and Trump’s son, Donald Trump Jr., each texted Meadows on November 4 and 5 with ideas for overturning the election.

On November 7, hours before the election was called, Perry texted Meadows again: “We have the data driven program that can clearly show where the fraud was committed. This is the silver bullet.”

While Perry has previously denied CNN reporting about his text messages to Meadows, CNN has confirmed it’s his cell phone and he signed this text, “Rick Perry,” including his number.

Other texts, however, include hints of doubt expressed by members of Trump’s team and even Meadows himself about the veracity of conspiracy theories being spread by Trump’s “kraken” team — outside attorneys working for Trump that included Giuliani and Sidney Powell.
Some key congressional allies who worked with Trump’s campaign initially in its efforts to overturn the election, such as Sen. Mike Lee of Utah and Rep. Chip Roy of Texas, ultimately soured on the approach as the January 6 congressional certification neared, CNN previously reported.
The texts also show how Trump allies were quick to deflect responsibility for the January 6 attack. Shortly after pro-Trump rioters breached the Capitol, one of his top aides began crafting a counter-narrative.



At 3:45 p.m., Trump campaign spokesman Jason Miller suggested to Meadows and Trump aide Dan Scavino that Trump should tweet: “Call me crazy, but ideas for two tweets from POTUS: 1) Bad apples, likely ANTIFA or other crazed leftists, infiltrated today s peaceful protest over the fraudulent vote count. Violence is never acceptable! MAGA supporters embrace our police and the rule of law and should leave the Capitol now! 2) The fake news media who encouraged this summer s violent and radical riots are now trying to blame peaceful and innocent MAGA supporters for violent actions. This isn’t who we are! Our people should head home and let the criminals suffer the consequences!”

Trump’s allies in Congress appeared to get the message. At 3:52 p.m., Greene told Meadows: “Mark we don’t think these attackers are our people. We think they are Antifa. Dressed like Trump supporters.”

Five minutes later, Rep. Louie Gohmert, a Texas Republican, texted Meadows: “Cap Police told me last night they’d been warned that today there’d be a lot of Antifa dressed in red Trump shirts & hats & would likely get violent.”

In the 16 months since January 6, hundreds of indictments have shown nearly all of those who breached the Capitol were in fact pro-Trump supporters.

While Greene was alarmed on January 6, by the next day she was apologizing that the efforts to block Biden’s certification had failed.

“Yesterday was a terrible day. We tried everything we could in our objection to the 6 states. I’m sorry nothing worked. I don’t think that President Trump caused the attack on the Capitol. It’s not his fault,” she wrote the morning of January 7. “Absolutely no excuse and I fully denounce all of it, but after shut downs all year and a stolen election, people are saying that they have no other choice.”

Meadows replied, “Thanks Marjorie.”

Greene is currently facing a legal challenge to disqualify her from running for Congress because of her alleged role in January 6. In court testimony Friday, the Georgia Republican repeatedly deflected or said she didn’t remember what she had said around the events of January 6. The Meadows text logs offer a new glimpse into what she was telling the White House chief of staff in real time.

On December 31, Greene reached out to Meadows for advice about how to prepare for objections to certifying the election on January 6.

“Good morning Mark, I’m here in DC. We have to get organized for the 6th,” Greene wrote. “I would like to meet with Rudy Giuliani again. We didn’t get to speak with him long. Also anyone who can help. We are getting a lot of members on board. And we need to lay out the best case for each state.”

Meadows does not appear to respond.

By January 17, Greene was suggesting ways to keep Trump in office, telling Meadows there were several Republicans in Congress who still wanted the then-President to declare martial law, which had been raised in a heated Oval Office meeting a month earlier.

Greene texted: “In our private chat with only Members, several are saying the only way to save our Republic is for Trump to call for Marshall (sic) law. I don’t know on those things. I just wanted you to tell him. They stole this election. We all know. They will destroy our country next. Please tell him to declassify as much as possible so we can go after Biden and anyone else!”

Again, Meadows does not appear to respond.

What Meadows turned over

Meadows provided the cache of 2,319 messages to the January 6 committee in December 2021. But soon after, he stopped cooperating and refused to appear for a deposition. Ultimately, the House voted to hold the former White House chief of staff in contempt of Congress. The Justice Department has not yet announced whether it will charge Meadows.
Meadows has sued the House committee in an attempt to block the congressional subpoenas. And in a late-night court filing on Friday, the committee responded with new details revealing Meadows was warned ahead of time that January 6 could turn violent, according to testimony from Cassidy Hutchison, one of Meadows’ former White House aides.

In addition, the committee released text messages Meadows exchanged with Republican members of Congress, including texts with Rep. Scott Perry of Pennsylvania about a scheme to replace Justice Department leaders who opposed Trump’s claims of election fraud.

In late December, Perry reached out to Meadows, connecting him to then-DOJ official Jeffrey Clark, who was pushing unfounded claims of voter fraud inside the Justice Department. Trump was considering firing the acting attorney general and installing Clark instead. Clark invoked his Fifth Amendment right against self-incrimination more than 100 times when he spoke to the January 6 committee in February.

On December 26, Perry texted Meadows, “Mark, just checking in as time continues to count down. 11 days to 1/6 and 25 days to inauguration. We gotta get going!”

“Mark, you should call Jeff,” he continued. “I just got off the phone with him and he explained to me why the principal deputy won’t work especially with the FBI. They will view it as as (sic) not having the authority to enforce what needs to be done.”

“I got it,” Meadows responded. “I think I understand. Let me work on the deputy position.”

On December 28, Perry reached out again: “Did you call Jeff Clark?” Meadows does not appear to respond.

Meadows withheld more than 1,000 messages from the committee on claims of privilege, the panel said in Friday’s court filing. In his lawsuit, Meadows’ attorney argued the former White House chief of staff “has been put in the untenable position of choosing between conflicting privilege claims.”

Hannity to Meadows: ‘Yes sir’

In addition to the texts the committee has released, CNN and other news organizations have previously published selections of text messages Meadows received from Lee, Roy, Trump Jr., Perry and Supreme Court Justice Clarence Thomas’ wife, Ginni Thomas.

The logs obtained by CNN include numerous messages from official White House cell phone numbers. Some have been identified by CNN, others are unknown.

There are also numerous group texts with Trump’s inner circle. The various group chats include Meadows, Ivanka Trump, Trump Jr. and Kushner, as well as top advisers such as Hope Hicks, campaign manager Bill Stepien, Miller and Scavino, among others.

Some texts only include links to news reports and social media. Others appear to contain content that was cut-and-pasted and forwarded. The logs do not contain images or attachments.

Meadows’ messages also include dozens of exchanges with Fox hosts, as well as journalists from the New York Times, Washington Post, Wall Street Journal, Associated Press, Politico, Bloomberg, NBC, ABC, CBS and CNN.

Among Meadows’ most frequent interactions were those with Fox’s Sean Hannity, a well-known friend of Trump. Throughout the logs, Hannity both gives advice and asks for direction.

On the afternoon of Election Day, Hannity texted Meadows to ask about turnout in North Carolina.

Meadows responded: “Stress every vote matters. Get out and vote.”

“Yes sir,” Hannity replied. “On it. Any place in particular we need a push.”

“Pennsylvania. NC AZ,” Meadows wrote. “Nevada.”

“Got it. Everywhere,” Hannity said.

For the most part, Meadows’ texts are short, and frequently he does not appear to reply at all. Some conversations include non sequiturs. It’s unclear whether Meadows did not respond to the messages or if the logs are incomplete, because texts could also have been deleted or withheld for claims of privilege.

CNN reached out for comment to all individuals who sent text messages quoted in this story. Meadows and his attorney did not respond to requests for comment. A spokesman for the January 6 committee declined to comment.

The fight to ‘stop the steal’

The text messages provide a timeline showing how Trump’s team searched all corners for evidence of election fraud and tried to overturn the election. Beginning on Election Day, Meadows was in the middle of it all, from connecting activists pushing conspiracy theories to strategizing with GOP lawmakers and rally organizers preparing for January 6.

The texts also show Meadows was dealing with everything from mediating a fight over who would be on the speaker’s list for the January 6 rally to fielding requests to pay Giuliani’s bills.

“Sir, we are airborne on the way to Michigan from Arizona. We’re going to need a hotel for the team and two vehicles to pick us up,” Bernie Kerik, a Giuliani associate, texted Meadows on December 1.

Reached for comment by CNN, Kerik confirmed the text was his and said that he never received a credit card for those travel expenses, paid for it himself and was later reimbursed.

Other texts show Meadows coordinating with GOP activists in the immediate aftermath of the election.

“Pls get 4 or 5 killers in remaining counts. Need outsiders who will torch the place. Local folks won’t do it. Lawyers and operators. Get us in these states,” American Conservative Union chairman Matt Schlapp texted Meadows on November 4.

“I may need to get you and mercy (sic) to go to PA,” Meadows responded, referring to Schlapp’s wife, Mercedes, who is a former Trump White House aide.

On a few occasions, Trump family members weighed in. Ivanka Trump sent a note on November 5 to a group that included Kushner, Hicks, Stepien, Miller and Meadows: “You are all WARRIORS of epic proportions! Keep the faith and the fight.”

Dozens of Republicans also offered support and advice to Meadows — as well as perpetuated conspiracy theories that were gaining traction in right-wing media.

For instance, Rep. Ted Budd, a North Carolina Republican now running for Senate, suggested in a text on November 7 that Dominion Voting Systems could be connected to George Soros’ company. Dominion has no corporate ties to Soros, a billionaire and frequent target of baseless conspiracy theories, according to a CNN fact check.

On November 6, Rep. Andy Biggs, an Arizona Republican, appeared to suggest that state legislatures should appoint electors “in the various states where there’s been shenanigans,” a move he acknowledged would be “highly controversial.” In his text, he wrote the legislatures could appoint “a look doors,” which is phonetically similar to electors.

On December 1, then-Attorney General William Barr infuriated Trump when he publicly stated that the Justice Department did not find widespread evidence of voter fraud. Nevertheless, Meadows received multiple texts pushing back, including from Schlapp later that day: “Happy to walk ag through our evidence. Its (sic) overwhelming.”

The texts also show Meadows reached out to GOP officials in multiple states to lobby for Trump’s cause. On two occasions, Meadows attempted to contact Georgia Secretary of State Brad Raffensperger, who was under attack from Trump for certifying Georgia’s election for Biden.

“mr Secretary. Can you call the White House switchboard,” Meadows wrote on December 5. “Your voicemail is full.”

Raffensperger does not appear to reply to the messages.

Trump’s efforts to overturn the election results in Georgia are under investigation by a district attorney in the Atlanta area.

Meadows also received text messages from GOP activists and local officials making outlandish claims, including allegations that “traitors inside our intel agencies” were committing election fraud, as well as baseless charges that voting equipment companies Dominion and Smartmatic had manipulated votes — the same false claims being pushed by Giuliani and Powell.

Both companies have filed billion-dollar lawsuits over the false election claims, including against Fox News, right-wing media organizations, Giuliani, Powell and Lindell.

Throughout the two months, Meadows received dozens of messages from Arizona GOP Chairwoman Kelli Ward, who offered what she claimed were examples and sources of voter fraud.

On December 9, she sent a text to Meadows letting him know she’d already reached out to Trump’s executive assistant: “This guy says he’s cracked the whole election fraud and wants to speak to someone. I sent his info to Molly Michael a few days ago, but I’m not sure it went anywhere.”

“I will call him,” Meadows responded.

Another frequent texter was Lindell, one of the most vocal proponents of baseless election conspiracy theories. Even after courts had dismissed dozens of Trump’s legal challenges, the My Pillow CEO was still pressing the White House.

“Everything Sidney has said is true! We have to get the machines and everything we already have proves the President won by millions of votes!” Lindell texted Meadows on December 20. “This is the biggest cover up of one of the worst crimes in history! I have spent over a million$ to help uncover this fraud and used my platform so people can get the word not to give up!”

Meadows replied, “Thanks brother. Pray for a miracle.”

Reached for comment by CNN, Lindell confirmed the text was his. He told CNN that he has not spoken to Meadows since before January 20, 2021, and that at the time he was “just trying to get an appointment with the President.”

Doubts about election fraud

While Trump and his allies publicly stuck by their claims that the election had been stolen, behind the scenes, Trump’s inner circle — including Meadows — expressed some doubts. Trump’s aides also questioned whether lawyers like Giuliani and Powell were doing more harm than good.

On November 6, Miller, Trump’s campaign spokesman, texted a group, which included Ivanka Trump, Kushner, Hicks, Stepien, Scavino and Meadows, suggesting that the numbers in Philadelphia didn’t back up claims about alleged election fraud there.

“One other key data point: In 2016, POTUS received 15.5% of the vote in Philadelphia County. Today he is currently at 18.3%. So he increased from his performance in 2016. In 2016, Philadelphia County made up 11.3% of the total vote in the state. As it currently stands, Philadelphia County only makes up 10.2% of the statewide vote tally. So POTUS performed better in a smaller share. Sen. (Rick) Santorum was just making this point on CNN – cuts hard against the urban vote stealing narrative,” Miller wrote.

A week later, Miller wrote to Meadows again, this time saying that campaign research did not find any evidence of a conspiracy involving Soros, the Democratic donor. Miller also said he was concerned about sharing the findings with Trump.

“Lots there re: functionality problems, not much there on Dem/Soros conspiracy connections,” Miller wrote on November 13. “Will defer to you on whether or not to share full report with POTUS. POTUS is clearly hyped up on them, not just from his tweets, but he also called me and Justin separately last night to complain. JM.”

On November 20, Meadows was asked by a Florida contact how confident he was about fraud related to Dominion. Meadows texted back: “Dominion, not that confident. Other fraud. Very confident.”

Two days later, Ginni Thomas messaged Meadows with apparent concerns, asking, “Trying to understand the Sidney Powell distancing…”

Meadows responded: “She doesn’t have anything or at least she won’t share it if she does.”

“Wow!” Ginni Thomas wrote back.

In one of the few messages Meadows received from Kushner, Trump’s son-in-law shared a fact check on December 4 debunking one of the most prominent election fraud claims from Georgia. The article showed that despite inflammatory claims of poll workers stashing suitcases filled with ballots under a table, that did not, in fact, occur.

‘Hoping the VP sticks with us’

After the Electoral College affirmed Biden’s win on December 14, Trump’s allies turned their attention to January 6: the congressional certification of the electors and the rally that Trump said on Twitter “will be wild!”

On December 21, Brooks, the Alabama congressman, wrote to Meadows and others in a group text asking whether he should engage with the media about the “formulation of our January 6 strategies.”

“Does the White House want me to reply or be mum?” Brooks wrote. A staunch Trump ally running for Senate this year, Brooks gave an incendiary speech on January 6 but recently fell out of favor with Trump after suggesting Republicans should move on from 2020.

In response to CNN’s request for comment, Brooks said he had “no regrets” about his speech on January 6 and that he was “shocked” by the violence. “I had no inkling,” Brooks added.

Cruz, a Texas Republican who pushed a plan inside the Senate that would have delayed certification of the election, exchanged just a few messages with Meadows — links to his statements posted to social media.
On January 2, the senator sent Meadows his tweet proposing a 10-day audit of the election results.

“Here’s the statement,” Cruz wrote.

“Perfect,” Meadows responded.

The texts also make frequent reference to then-Vice President Mike Pence, who refused to go along with Trump’s plan to try to block the certification on January 6. On December 30, Rep. Brian Babin of Texas expressed concern that congressional leaders might try to short circuit their objections — and that Pence was not on board.

“Dems and some Republicans may well try to shortstop our objection efforts. Hoping the VP sticks with us,” Babin wrote.

On New Year’s Eve, Miller shared a news article with Meadows that Pence opposed a lawsuit intended to help overturn the election. Miller warned that it could be used “to drive a massive wedge between POTUS and everybody else in the party.”

“He’s absolutely going to blow his stack on this if he isn’t already aware,” Miller said of Trump. “Oh boy I don’t understand what the VP was thinking here.”

On January 5, Jordan, the Ohio congressman and close GOP ally of Meadows, weighed in.

“On January 6, 2021, Vice President Mike Pence, as President of the Senate, should call out all electoral votes that he believes are unconstitutional as no electoral votes at all — in accordance with guidance from founding father Alexander Hamilton and judicial precedence,” Jordan wrote.

Meadows responded the morning of January 6: “I have pushed for this. Not sure it is going to happen.”

The January 6 committee included the text exchange in its Friday court filing as evidence of Meadows’ alleged involvement in the effort to overturn the election.

The logs also show Meadows was involved with planning the rally on January 6, helping to mediate a fight over the speakers list. Trump adviser Katrina Pierson was alarmed at some of the proposed fringe figures who wanted to speak.

On January 2 and 3, Pierson wrote to Meadows looking for help.

“Good afternoon, would you mind giving me a call re: this Jan 6th event. Things have gotten crazy and I desperately need some direction. Please,” she asked on January 2.

The next day, she reached out again: “Scratch that, Caroline Wren has decided to move forward with the original psycho list. Apparently Dan Scavino approved??”

She continued: “So, I’m done. I can’t be a part of embarrassing POTUS any further.”

Wren was a fundraiser for the Trump campaign and helped organize the January 6 rally. She has been subpoenaed by the January 6 committee.

Less than an hour later, Pierson wrote Meadows that she told Wren she was talking to the White House in order to get her to back down.

“I let her know that I was going to reach out to WH and her tone changed,” Pierson wrote. “So, I’ll continue to build a proper event.”

“Thank you,” Meadows responded.

‘As bad as this can get’

In the aftermath of the violence at the Capitol on January 6, Trump’s inner circle discussed in a group text how to deal with the fallout — and Trump’s suspension from Twitter. At 10:10 p.m. on January 6, Kushner texted the group: “Why don’t we post on his Facebook page since he isn’t locked out there.”

In the final days of Trump’s term, as he faced impeachment for a second time, Meadows received words of encouragement from staunch allies, as well as caution from advisers.

“I would like to pass to POTUS that we are still with him, I believe in him and I want to encourage him,” Rep. Andrew Clyde, a freshman Georgia Republican, wrote on January 9. “I truly hope he does create a new platform to complete (sic) with Twitter and I hope he calls it ‘Trumpet’ and then we can send out ‘notes’ to each other!”

“I will share it with him. Thanks Andrew,” Meadows responded.

On January 13, the day the House voted to impeach Trump for inciting the insurrection at the Capitol — with 10 Republicans joining Democrats — Miller shared polling data in a group text with Meadows, Scavino and Kushner that showed “2/3 of the MAGA base wants us to move on.”

“I tried to walk the President through this earlier but he won’t have any of it,” Miller said.

As Trump prepared to leave power, he appeared to be a pariah in the Republican Party. House GOP Leader Kevin McCarthy had said during the House’s January 13 impeachment debate that the outgoing President “bears responsibility” for the riot. Six days later, on January 19, Senate Republican Leader Mitch McConnell denounced Trump from the floor of the Senate, saying the mob that attacked the Capitol was “provoked by the President and other powerful people.”

Nevertheless, Trump’s standing in the Republican Party quickly recovered, especially after McCarthy’s January 28 visit to Mar-a-Lago and the February 2021 acquittal of Trump in the Senate impeachment trial.

But before Trump left office, the Meadows text logs show some of Trump’s staunchest allies were dejected. On January 19, in one of the final texts Meadows received as chief of staff, Fox’s Sean Hannity shared a video of McConnell’s floor speech.

Hannity texted Meadows: “Well this is as bad as this can get.”

CNN’s Ryan Nobles, Tara Subramanian and Christie Johnson contributed to this report.



Read original article here

Zoom Video Communications Reports Fourth Quarter and Fiscal Year 2022 Financial Results

Zoom Video Communications, Inc.

  • Year-end number of customers contributing more than $100,000 in trailing 12 months revenue up approximately 66% year over year

  • Fourth quarter total revenue of $1,071.4 million, up 21% year over year; full fiscal year total revenue of $4,099.9 million, up 55% year over year

  • Fourth quarter GAAP income from operations of $251.8 million, down 2% year over year; full fiscal year GAAP income from operations of $1,063.6 million, up 61% year over year

  • Fourth quarter non-GAAP income from operations of $420.3 million, up 16% year over year; full fiscal year non-GAAP income from operations of $1,657.1 million, up 69% year over year

  • Authorization to repurchase up to $1.0 billion of Zoom’s Class A common stock

SAN JOSE, Calif., Feb. 28, 2022 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM), a leading provider of video-first unified communications, today announced financial results for the fourth quarter and fiscal year ended January 31, 2022.

“In fiscal year 2022, we delivered strong results with total revenue of more than $4 billion growing 55% year over year along with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform,” said Zoom founder and CEO, Eric S. Yuan. “Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers. It is apparent that businesses want a full communications platform that is integrated, secure, and easy to use. We are proud to lead the charge of the digital transformation for communications. To sustain and enhance our leadership position, in fiscal year 2023 we plan to build out our platform to further enrich the customer experience with new cloud-based technologies and expand our go-to-market motions, which we believe will enable us to drive future growth.”

Fourth Quarter Fiscal Year 2022 Financial Highlights:

  • Revenue: Total revenue for the quarter was $1,071.4 million, up 21% year over year.

  • Income from Operations and Operating Margin: GAAP income from operations for the quarter was $251.8 million, compared to GAAP income from operations of $256.1 million in the fourth quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from operations for the fourth quarter was $420.3 million, up from $360.9 million in the fourth quarter of fiscal year 2021. For the fourth quarter, GAAP operating margin was 23.5% and non-GAAP operating margin was 39.2%.

  • Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the quarter was $490.5 million, or $1.60 per share, compared to GAAP net income attributable to common stockholders of $260.4 million, or $0.87 per share in the fourth quarter of fiscal year 2021.

Non-GAAP net income for the quarter was $393.6 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, losses on strategic investments, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $1.29. In the fourth quarter of fiscal year 2021, non-GAAP net income was $365.4 million, or $1.22 per share.

  • Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of January 31, 2022 was $5,419.3 million.

  • Cash Flow: Net cash provided by operating activities was $209.4 million for the quarter, compared to $399.4 million in the fourth quarter of fiscal year 2021. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $273.6 million, compared to $377.9 million in the fourth quarter of fiscal year 2021.

Full Fiscal Year 2022 Financial Highlights:

  • Revenue: Total revenue for the fiscal year was $4,099.9 million, up 55% year over year.

  • Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $1,063.6 million, compared to GAAP income from operations of $659.8 million for fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the fiscal year was $1,657.1 million, up from $983.3 million for fiscal year 2021. For the fiscal year, GAAP operating margin was 25.9% and non-GAAP operating margin was 40.4%.

  • Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the fiscal year was $1,375.1 million, or $4.50 per share, compared to GAAP net income attributable to common stockholders of $671.5 million, or $2.25 per share for fiscal year 2021.

Non-GAAP net income for the fiscal year was $1,549.1 million, after adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, gains on strategic investments, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $5.07. In fiscal year 2021, non-GAAP net income was $995.7 million, or $3.34 per share.

  • Cash Flow: Net cash provided by operating activities was $1,605.3 million for the fiscal year, compared to $1,471.2 million for fiscal year 2021. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $1,557.7 million, compared to $1,391.2 million for fiscal year 2021.

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

  • 2,725 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 66% from the same quarter last fiscal year.

  • Approximately 509,800 customers with more than 10 employees, up approximately 9% from the same quarter last fiscal year.

  • A trailing 12-month net dollar expansion rate for customers with more than 10 employees of approximately 129%.

As Zoom approaches its three-year anniversary as a public company, Zoom’s business has evolved substantially and the metrics that management uses to evaluate the business have changed. Beginning with the first quarter of fiscal year 2023, Zoom will no longer present the number of customers with more than 10 employees and the trailing 12-month net dollar expansion rate for customers with more than 10 employees. However, Zoom will still provide these metrics through the end of fiscal year 2023 in the appendix to the investor deck that Zoom will continue to post on its IR site each quarter at https://investors.zoom.us.

Going forward, Zoom will provide the following metrics in addition to the number of customers contributing more than $100,000 in trailing 12 months revenue: the number of Enterprise customers and the net dollar expansion rate for Enterprise customers. Zoom defines Enterprise customers as distinct business units who have been engaged by either Zoom’s direct sales team, channel partners or independent software vendor partners. At the end of the fourth quarter of fiscal year 2022, Zoom had:

  • Approximately 191,000 Enterprise customers, up 35% year over year.

  • A trailing 12-month net dollar expansion rate for Enterprise customers of 130%.

Financial Outlook: Zoom is providing the following guidance for its first quarter of fiscal year 2023 and its full fiscal year 2023.

  • First Quarter Fiscal Year 2023: Total revenue is expected to be between $1.070 billion and $1.075 billion and non-GAAP income from operations is expected to be between $345.0 million and $350.0 million. First quarter non-GAAP diluted EPS is expected to be between $0.86 and $0.88 with approximately 309 million non-GAAP weighted average shares outstanding.

  • Full Fiscal Year 2023: Total revenue is expected to be between $4.530 billion and $4.550 billion and non-GAAP income from operations is expected to be between $1.430 billion and $1.450 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $3.45 and $3.51 with approximately 312 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.

Stock Repurchase Authorization: Zoom’s Board of Directors has authorized a stock repurchase program of up to $1.0 billion of Zoom’s outstanding Class A common stock. The program will expire in February 2024.

Repurchases of Zoom’s Class A common stock may be effected, from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws.

The timing and the amount of any repurchased Class A common stock will be determined by Zoom’s management based on its evaluation of market conditions and other factors. The repurchase program will be funded using Zoom’s working capital. Any repurchased shares of Class A common stock will be retired. The repurchase program does not obligate Zoom to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at Zoom’s discretion.

Zoom Video Earnings Call

Zoom will host a Zoom Video Webinar for investors on February 28, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results, business highlights and financial outlook. Investors are invited to join the Zoom Video Webinar by visiting: https://investors.zoom.us/

About Zoom
Zoom is for you. Zoom is a space where you can connect to others, share ideas, make plans, 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 Zoom’s financial outlook for the first quarter of fiscal year 2023 and full fiscal year 2023, Zoom’s market position, opportunities, and growth strategy, product initiatives and go-to-market motions and the expected benefits resulting from the same, market trends and Zoom’s stock repurchase program. 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 as the impact of the COVID-19 pandemic tapers, particularly as vaccines become widely available and distributed, and users return to work or school or are otherwise no longer subject to limitations on in-person meetings, 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, failures in internet infrastructure or interference with broadband access which could cause current or potential users to believe that our systems are unreliable, market volatility, and global security concerns and their potential impact on regional and global economies and supply chains. 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 October 31, 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 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 Margin. 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, gains on strategic investments, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Zoom excludes gains on strategic investments, net 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 income tax benefits from discrete activities, including the income tax benefit related to the release of the US federal and state valuation allowance, because of their nonrecurring nature. 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.

Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Margin. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom defines adjusted FCF as free cash flow plus litigation settlement payments, net. Zoom adds back litigation settlement payments, net because they are not part of Zoom’s ongoing operating activities, and the consideration of measures that exclude such payments can assist in the comparison of cash generated from operations in different periods which may or may not include such payments and assist in the comparison with the results of other companies in the industry. Zoom considers free cash flow and adjusted free cash flow to be liquidity measures that provide 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 defines Enterprise customers as distinct business units who have been engaged by either Zoom’s direct sales team, channel partners or independent software vendor partners.

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 or Enterprise customers, as the case may be, 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. Zoom then calculates 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
Head of Global Public Relations and Executive Communications for Zoom
press@zoom.us

Investor Relations

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

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

As of January 31,

2022

2021

Assets

Current assets:

Cash and cash equivalents

$

1,062,820

$

2,240,303

Marketable securities

4,356,446

2,004,410

Accounts receivable, net

419,673

294,703

Deferred contract acquisition costs, current

199,266

136,630

Prepaid expenses and other current assets

145,602

116,819

Total current assets

6,183,807

4,792,865

Deferred contract acquisition costs, noncurrent

164,714

157,262

Property and equipment, net

222,354

149,924

Operating lease right-of-use assets

95,965

97,649

Strategic investments

367,814

18,668

Goodwill

27,607

24,340

Deferred tax assets

382,296

1,519

Other assets, noncurrent

106,761

55,766

Total assets

$

7,551,318

$

5,297,993

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

7,841

$

8,664

Accrued expenses and other current liabilities

430,415

393,018

Deferred revenue, current

1,141,435

858,284

Total current liabilities

1,579,691

1,259,966

Deferred revenue, noncurrent

38,481

25,211

Operating lease liabilities, noncurrent

85,018

90,415

Other liabilities, noncurrent

68,110

61,634

Total liabilities

1,771,300

1,437,226

Stockholders’ equity:

Preferred stock

Common stock

299

292

Additional paid-in capital

3,749,514

3,187,168

Accumulated other comprehensive (loss) income

(17,902

)

839

Retained earnings

2,048,107

672,468

Total stockholders’ equity

5,780,018

3,860,767

Total liabilities and stockholders’ equity

$

7,551,318

$

5,297,993

Note: The amount of unbilled accounts receivable included within accounts receivable, net on the consolidated balance sheets was $59.7 million and $24.6 million as of January 31, 2022 and 2021, respectively.

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

Three Months Ended January 31,

Year Ended January 31,

2022

2021

2022

2021

Revenue

$

1,071,376

$

882,485

$

4,099,864

$

2,651,368

Cost of revenue

257,347

267,284

1,054,554

821,989

Gross profit

814,029

615,201

3,045,310

1,829,379

Operating expenses:

Research and development

116,996

52,375

362,990

164,080

Sales and marketing

325,415

214,018

1,135,959

684,904

General and administrative

119,799

92,691

482,770

320,547

Total operating expenses

562,210

359,084

1,981,719

1,169,531

Income from operations

251,819

256,117

1,063,591

659,848

(Losses) gains on strategic investments, net

(110,736

)

43,761

2,538

Other (expense) income, net

(2,549

)

8,536

(5,720

)

15,648

Income before (benefit from) provision for income taxes

138,534

264,653

1,101,632

678,034

(Benefit from) provision for income taxes

(352,107

)

4,043

(274,007

)

5,718

Net income

490,641

260,610

1,375,639

672,316

Undistributed earnings attributable to participating securities

(116

)

(217

)

(582

)

(789

)

Net income attributable to common stockholders

$

490,525

$

260,393

$

1,375,057

$

671,527

Net income per share attributable to common stockholders:

Basic

$

1.64

$

0.91

$

4.64

$

2.37

Diluted

$

1.60

$

0.87

$

4.50

$

2.25

Weighted-average shares used in computing net income per share attributable to common stockholders:

Basic

298,374,298

287,598,299

296,334,894

283,853,654

Diluted

306,010,113

300,613,251

305,826,505

298,127,669

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

Three Months Ended January 31,

Year Ended January 31,

2022

2021

2022

2021

Cash flows from operating activities:

Net income

$

490,641

$

260,610

$

1,375,639

$

672,316

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation expense

161,375

96,261

477,287

275,818

Income tax benefit from release of valuation allowance

(327,957

)

(327,957

)

Amortization of deferred contract acquisition costs

51,592

33,025

177,283

104,306

(Losses) gains on strategic investments, net

110,736

(43,761

)

(2,538

)

Depreciation and amortization

12,913

9,456

48,188

28,857

Provision for accounts receivable allowances

13,265

11,789

36,747

32,007

Non-cash operating lease cost

5,256

3,705

18,387

10,887

Charitable donation of common stock

23,312

Amortization on marketable securities

5,770

2,646

25,316

5,433

Other

2,464

(3

)

4,591

927

Changes in operating assets and liabilities:

Accounts receivable

(50,642

)

(28,922

)

(159,183

)

(219,039

)

Prepaid expenses and other assets

(83,936

)

(20,263

)

(155,934

)

(68,521

)

Deferred contract acquisition costs

(82,066

)

(40,774

)

(247,371

)

(307,068

)

Accounts payable

(14,280

)

(5,292

)

(2,218

)

3,481

Accrued expenses and other liabilities

(70,545

)

47,735

101,369

251,654

Deferred revenue

(10,626

)

32,124

293,887

665,724

Operating lease liabilities, net

(4,564

)

(2,701

)

(17,004

)

(6,379

)

Net cash provided by operating activities

209,396

399,396

1,605,266

1,471,177

Cash flows from investing activities:

Purchases of marketable securities

(988,436

)

(1,040,361

)

(4,434,749

)

(2,056,470

)

Maturities of marketable securities

685,498

174,188

1,733,043

580,795

Sales of marketable securities

15,285

296,867

36,897

Purchases of property and equipment

(20,774

)

(21,455

)

(132,590

)

(79,972

)

Purchases of strategic investments

(178,800

)

(305,149

)

(13,000

)

Cash paid for acquisition, net of cash acquired

(1,380

)

(3,501

)

(26,486

)

Purchases of intangible assets

(3,392

)

(1,458

)

(13,018

)

(5,843

)

Other

43

1,659

Net cash used in investing activities

(491,999

)

(889,043

)

(2,859,097

)

(1,562,420

)

Cash flows from financing activities:

Proceeds from issuance of common stock for employee stock purchase plan

21,485

17,673

59,331

38,433

Proceeds from exercise of stock options, net of repurchases

3,360

4,709

14,404

28,550

Proceeds from employee equity transactions (remitted) to be remitted to employees and tax authorities, net

(11,662

)

(247,553

)

(40,004

)

4,088

Proceeds from follow-on public offering, net of underwriting discounts and commissions and other offering costs

1,979,206

1,979,206

Other

337

Net cash provided by financing activities

13,183

1,754,035

34,068

2,050,277

Net (decrease) increase in cash, cash equivalents, and restricted cash

(269,420

)

1,264,388

(1,219,763

)

1,959,034

Cash, cash equivalents, and restricted cash—beginning of year

1,342,773

1,028,728

2,293,116

334,082

Cash, cash equivalents, and restricted cash—end of year

$

1,073,353

$

2,293,116

$

1,073,353

$

2,293,116

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

Three Months Ended January 31,

Year Ended January 31,

2022

2021

2022

2021

GAAP income from operations

$

251,819

$

256,117

$

1,063,591

$

659,848

Add:

Stock-based compensation expense and related payroll taxes

164,511

101,853

504,336

290,832

Litigation settlements, net

66,916

Acquisition-related expenses

3,960

2,938

22,277

9,278

Charitable donation of common stock

23,312

Non-GAAP income from operations

$

420,290

$

360,908

$

1,657,120

$

983,270

GAAP operating margin

23.5

%

29.0

%

25.9

%

24.9

%

Non-GAAP operating margin

39.2

%

40.9

%

40.4

%

37.1

%

GAAP net income attributable to common stockholders

$

490,525

$

260,393

$

1,375,057

$

671,527

Add:

Stock-based compensation expense and related payroll taxes

164,511

101,853

504,336

290,832

Litigation settlements, net

66,916

(Losses) gains on strategic investments, net

110,736

(43,761

)

Acquisition-related expenses

3,960

2,938

22,277

9,278

Charitable donation of common stock

23,312

Income tax benefits from discrete activities

(376,266

)

(376,266

)

Undistributed earnings attributable to participating securities

116

217

582

789

Non-GAAP net income

$

393,582

$

365,401

$

1,549,141

$

995,738

Net income per share – basic and diluted:

GAAP net income per share – basic

$

1.64

$

0.91

$

4.64

$

2.37

Non-GAAP net income per share – basic

$

1.32

$

1.27

$

5.23

$

3.51

GAAP net income per share – diluted

$

1.60

$

0.87

$

4.50

$

2.25

Non-GAAP net income per share – diluted

$

1.29

$

1.22

$

5.07

$

3.34

GAAP and non-GAAP weighted-average shares used to compute net income per share – basic

298,374,298

287,598,299

296,334,894

283,853,654

GAAP and non-GAAP weighted-average shares used to compute net income per share – diluted

306,010,113

300,613,251

305,826,505

298,127,669

Net cash provided by operating activities

$

209,396

$

399,396

$

1,605,266

$

1,471,177

Less: Purchases of property and equipment

(20,774

)

(21,455

)

(132,590

)

(79,972

)

Free cash flow (non-GAAP)

188,622

377,941

1,472,676

1,391,205

Add: Litigation settlement payments, net

85,000

85,000

Adjusted free cash flow (non-GAAP)

$

273,622

$

377,941

$

1,557,676

$

1,391,205

Net cash used in investing activities

$

(491,999

)

$

(889,043

)

$

(2,859,097

)

$

(1,562,420

)

Net cash provided by financing activities

$

13,183

$

1,754,035

$

34,068

$

2,050,277

Operating cash flow margin (GAAP)

19.5

%

45.3

%

39.2

%

55.5

%

Adjusted free cash flow margin (non-GAAP)

25.5

%

42.8

%

38.0

%

52.5

%

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Images and patchy communications reveal devastation in Tonga after tsunami unleashed by massive volcano eruption

Wellington — A volcano that exploded on the Pacific island nation of Tonga has almost disappeared from view, new images revealed Tuesday, with swathes of the island nation smothered in grey ash and dust or damaged by a tsunami. Tonga has been virtually cut off from the rest of the world since Saturday’s volcanic blast — one of the largest recorded in decades.

The volcano erupted about 19 miles into the air and deposited ash, gas and acid rain across a large area of the Pacific. Three days after the eruption, the outside world was still scrambling on Tuesday to understand the scale of the disaster, using patchy satellite phone connections, surveillance flights and satellite images.

The human toll remained largely unknown on Tuesday, but New Zealand said at least two people had been confirmed killed, citing Tongan police. One of them was Angela Glover, a 50-year-old British woman who ran an animal rescue charity. Her family said her body was found after she was swept away by the tsunami.

An aerial handout photo provided by the New Zealand Defense Force shows homes covered in ash on January 17, 2022, in Nomuka, Tonga.

Handout/New Zealand Defense Force/Getty


Satellite images released by Maxar Technologies on Tuesday showed that where most of the volcanic structure stood above sea level a few days ago, there is now just open sea. Only two relatively small volcanic islands were still visible above sea level after the eruption.

“What we saw above the water, that has now been destroyed, was only the tip of a volcano that had grown on the rim of the massive underwater volcano,” said Monash University volcanologist Heather Handley.

New Zealand released aerial images taken from a surveillance flight the previous day, revealing a tree-lined coast transformed from green to grey by the volcanic fallout. Wrecked buildings were visible on the foreshore alongside others that appeared intact.

Volcanic ash blanketed island fields, images from an Australian Defence Force P-8A Poseidon patrol aircraft showed. Shipping containers had been knocked over like dominoes at a port on the main island.

In this handout photo provided by the New Zealand Defense Force, an aerial view from a P-3K2 Orion surveillance flight shows ash covering a coastal area on January 17, 2022, in Nomuka, Tonga.

Handout/New Zealand Defense Force/Getty


Australia’s HMAS Adelaide and New Zealand’s HMNZS Wellington and HMNZS Aotearoa were ordered to be ready for a possible aid request from Tonga, which lies three to five days’ sailing away.

With water sources feared to be poisoned by volcanic fallout, the Red Cross said it was sending 2,516 water containers.

France, which has territories in the South Pacific, pledged to help meet the people of Tonga’s “most urgent needs.”

The United Nations said a signal had been detected from a distress beacon on the low-lying island of Mango.

This satellite image taken by Himawari-8, a Japanese weather satellite, shows an undersea volcano eruption at the Pacific nation of Tonga on January 15, 2022.

Japan Meteorology Agency via AP


The U.N. Office for the Coordination of Humanitarian Affairs said surveillance flights had confirmed “substantial property damage” on Mango, home to some 30 people, and another island, Fonoifua. Later on Tuesday the Reuters news agency quoted Tongan government officials as saying every single home on Mango had been destroyed, and only two remained standing on Fonoifua. The officials said fresh water supplies across Tonga were contaminated with ash.

The U.N. agency also reported “extensive damage” on the western beaches of the main island Tongatapu, “with several resorts and/or houses destroyed and/or badly damaged.”

Tonga’s capital Nuku’alofa was shrouded in almost two inches of volcanic ash and dust, it said. Power had been restored to parts of the capital. Local phone systems had been restored but international communications were still difficult as the blast severed an undersea communications cable between Tonga and Fiji. Operators said it would take up to two weeks to repair the cable.

This satellite image provided by Planet Labs PBC, shows an overview of Kanokupolu in Tongatapu, Tonga on January 14, 2022, top, and on January 16, 2022, after the January 15 eruption of the Hunga-Tonga-Hunga-Ha’apai volcano.

Planet Labs PBC via AP


The capital’s waterfront, the U.N. body said, was “seriously damaged with rocks and debris pushed inland from the tsunami.”

Satellite images released by the United Nations Satellite Center showed the impact of the eruption and tsunami on the tiny island of Nomuka, one of the closest to the Hunga-Tonga-Hunga-Ha’apai volcano.

The satellite center said out of 104 structures analyzed in the cloud-free area visible from space, 41 were identified as damaged.

Tonga’s airport was working to remove volcanic ash from the capital’s runway. Australia said the ash must be cleared before it can land a C-130 military plane with aid.

Even when relief efforts get under way, they may be complicated by COVID-19 entry restrictions.  

Saturday’s eruption was recorded around the world and heard as far away as Alaska, triggering a tsunami that flooded Pacific coastlines from Japan to the United States.

The U.N. Secretary General’s Special Envoy for Oceans, Peter Thomson, told CBS News’ Pamela Falk that the eruption was “a dramatic reminder we live within nature’s embrace.” 

“Our thoughts and sympathies are with the people of Tonga and South East Fiji,” Thomson, Fiji’s former  Ambassador to the U.N. who has spent years warning of the threat climate change poses to small island nations like his own, told Falk.

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