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  • Zoom Q3 🪙// PTC acquisition 🤝// NDR guide 📖

Zoom Q3 🪙// PTC acquisition 🤝// NDR guide 📖

And also: Nvidia + Azure = AI, and Google Clouds partnership with Accenture.

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you: Zoom Q3, PTC acquisition, NDR guide, Nvidia + Azure = AI, and Google Clouds with Accenture.


Zoom Video Communications reported $1.07 earnings per share, $0.23 better than the expectations of $0.84. Revenues rose 4.9% from a year earlier, to $1.1 billion, in line with S&P Capital IQ Consensus.

GAAP income from operations was $66.5 million vs. $290.9 million in Q3 2022. GAAP operating margin was 6.0%, and the non-GAAP operating margin was 34.6%.

14% year-over-year increase in Enterprise customers was recorded. (Approximately 209,300). 3,286 customers contributed more than $100,000 in trailing 12 months' revenue, up 31% year-over-year. Online average monthly churn was 3.1% for Q3, down 60 bps from the same quarter last fiscal year.

The company issued downside guidance for Q4 and sees EPS of $0.75-0.78, excluding non-recurring items, vs. $0.82 S&P Capital IQ Consensus. Zoom expects Q4 revenue between $1.095-1.105 billion vs. market expectations of $1.12 billion. Revenue in constant currency is expected between $1.120 and $1.130 billion.

For the full fiscal year, 2023 total revenue is expected between $4.370 and $4.380 billion, and revenue in constant currency between $4.442 and $4.452 billion. Non-GAAP EPS is expected between $3.91 and $3.94.

PTC to acquire ServiceMax for approximately $1.46 billion from an entity majority owned by Silver Lake. The transaction is expected to close in early January 2023.

The acquisition will strengthen the service capabilities of PTC's closed-loop PLM portfolio. And is expected to contribute to PTC's SaaS ARR (around $160 million) in FY '23.

PTC and ServiceMax support manufacturers of complex, highly configured products for medical devices, industrial products, aerospace, and related verticals.

Net dollar retention rate, or NDR, is one of the key SaaS financial metrics that determines revenue growth or shrinkage within the existing customer base over a specified time. Read our guide on its definition, formula, and uses.

Microsoft has struck a deal to use Nvidia's "full stack" AI hardware and software. Microsoft will use it for its internal development and be made available to subscribers to their cloud service.

Getting distribution of its hardware and AI software via public clouds is a big deal for Nvidia. But it is still early in generating a recurring revenue stream from cloud subscription access to its AI suite and distribution via partners.

Google Cloud and Accenture are expanding their partnership to increase their customers' development data and artificial intelligence (AI) solutions.

Accenture and Google Cloud previously partnered with several leading companies on digital transformations. For instance, the partners helped Lendlease develop software that is designed to decrease employee complaints by 30% and increase productivity by 12%

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