### What the **$51.0 million** “purchases of strategic investments” were (as far as Zoom discloses in filings) Across Zoom’s FY2024 periodic filings, the **$51.0 million** figure shows up in **two places**: 1) as a **cash outflow** line item in the investing section of the cash flow statement; and 2) as a **description of the type/accounting** of the investments (private-company equity, no control/significant influence → “measurement alternative”). Zoom **does not identify the investee(s)** behind this $51.0 million in the FY2024 filings I reviewed (i.e., the filings do not say “Anthropic”). --- ## 1) Where the **$51.0m** appears in the financial statements (cash flow) ### Q1 FY2024 (three months ended April 30, 2023) Zoom’s Form 10‑Q shows “Purchases of strategic investments” of **$(51,000)** (in thousands), i.e., **$51.0 million** cash outflow. ["Purchases of strategic investments | (51,000)"](0001585521-23-000128|0) Zoom’s MD&A narrative also explicitly explains investing cash flow usage included “purchases of strategic investments of $51.0 million.” ["purchases of strategic investments of $51.0 million"](0001585521-23-000128|0) ### Q2 FY2024 roll-forward (six months ended July 31, 2023) In the next 10‑Q, Zoom again attributes investing cash flow usage to “purchases of strategic investments of $51.0 million,” and it also shows **proceeds from strategic investments of $107.2 million** over the six-month period. ["purchases of strategic investments of $51.0 million"](0001585521-23-000194|0) ["Proceeds from strategic investments | 107,244"](0001585521-23-000194|0) --- ## 2) What Zoom says those **$51.0m** investments *were* (type + accounting) In the same Q1 FY2024 10‑Q, Zoom adds a specific explanatory paragraph: - The $51.0 million consisted of **“strategic investments in equity securities of private companies.”** ["$51.0 million of strategic investments"](0001585521-23-000128|0) ["equity securities of private companies"](0001585521-23-000128|0) - Based on the terms of the securities, Zoom determined it **did not have a controlling interest** and **did not have the ability to exercise significant influence** over the investees’ operating/financial policies. ["do not have a controlling interest"](0001585521-23-000128|0) ["ability to exercise significant influence"](0001585521-23-000128|0) - Therefore, the investments were accounted for under the **“measurement alternative method.”** ["measurement alternative method"](0001585521-23-000128|0) This is the most “granular” disclosure Zoom provides about the $51.0m in FY2024 filings: it’s about **instrument type** (private-company equity securities) and **GAAP accounting** (measurement alternative), not about the specific company names. ["private companies"](0001585521-23-000128|0) --- ## 3) How that $51.0m shows up in Zoom’s “Strategic investments” footnote (balance-sheet categorization) Zoom’s Q1 FY2024 10‑Q includes a table that breaks “Strategic investments” into measurement categories: **Fair Value**, **Measurement Alternative**, and **Equity Method**. ["Measurement Alternative"](0001585521-23-000128|0) In that same filing, the “Strategic investments” table shows: - **As of Jan 31, 2023** (FY2023 year-end): strategic investments total **$398.992m** (in thousands) and “measurement alternative” was **$118.763m**. ["Strategic investments | 398,992"](0001585521-23-000128|0) ["Measurement Alternative | 118,763"](0001585521-23-000128|0) - **As of Apr 30, 2023** (end of Q1 FY2024): strategic investments total **$452.267m** and “measurement alternative” was **$186.232m**. ["Strategic investments | 452,267"](0001585521-23-000128|0) ["Measurement Alternative | 186,232"](0001585521-23-000128|0) **Important nuance:** this table is a *balance-sheet snapshot*; it doesn’t say that the full change equals the $51.0m purchase (because it can also move due to observable price changes, impairments, reclassifications, etc.). The filing does not provide an investee-level rollforward that ties the $51.0m to a named company. ["measurement alternative method"](0001585521-23-000128|0) --- ## 4) FY2024 10‑K adds broader FY2024 totals (and puts the $51m in context) Zoom’s FY2024 Form 10‑K (year ended Jan 31, 2024) expands from the quarterly $51m figure to full-year totals: - Zoom states that **during FY2024**, it made **$70.5 million** of strategic investments in **equity securities of private companies** (again: no control/significant influence → measurement alternative). ["made a total of $70.5 million"](0001585521-24-000030|0) ["equity securities of private companies"](0001585521-24-000030|0) ["measurement alternative method"](0001585521-24-000030|0) - It also states that **during FY2024**, it sold **$169.9 million** of strategic investments in **equity securities of public companies**. ["sold a total of $169.9 million"](0001585521-24-000030|0) ["equity securities of public companies"](0001585521-24-000030|0) So, filings support that the **$51.0m** in Q1 FY2024 appears to be part (but not necessarily all) of the **$70.5m** FY2024 private-company strategic investment purchases. ["In the first quarter of fiscal year 2024"](0001585521-23-000128|0) ["During the fiscal year ended January 31, 2024"](0001585521-24-000030|0) --- ## 5) The accounting policy that governs these “strategic investments” (what it means for disclosure) Zoom’s FY2024 10‑K describes its policy for strategic investments: - Publicly held equity securities: measured using quoted prices, with changes recorded through “gains (losses) on strategic investments, net.” ["Publicly held equity securities are measured using quoted prices"](0001585521-24-000030|0) ["gains (losses) on strategic investments, net"](0001585521-24-000030|0) - Privately held equity securities without readily determinable fair values: recorded at cost and adjusted for impairments and for **observable price changes** in the same/similar securities from the same issuer (the “measurement alternative”). ["recorded at cost"](0001585521-24-000030|0) ["observable price changes"](0001585521-24-000030|0) ["measurement alternative"](0001585521-24-000030|0) - Zoom says it assesses its privately held debt/equity strategic investment portfolio quarterly for impairment indicators, and in FY2024 the impairment recognized was “immaterial.” ["assess... quarterly"](0001585521-24-000030|0) ["immaterial amount of impairment"](0001585521-24-000030|0) This policy framework is consistent with **why you don’t see investee names**: private-company equity under the measurement alternative is generally carried at cost unless there’s an observable transaction or impairment trigger, and Zoom’s disclosures here remain aggregated. ["Privately held equity securities without a readily determinable fair value"](0001585521-24-000030|0) --- # Key takeaway (filings-only) **Filings confirm** that Zoom spent **$51.0 million** in **Q1 FY2024** on “strategic investments,” and that these were **private-company equity securities** accounted for under the **measurement alternative** due to **no control / no significant influence**—but the filings **do not name** the underlying company (Anthropic or otherwise). ["Purchases of strategic investments | (51,000)"](0001585521-23-000128|0) ["equity securities of private companies"](0001585521-23-000128|0) ["measurement alternative method"](0001585521-23-000128|0) If you want, I can continue by searching **page 2+** of the results set for any other FY2024-era disclosures that mention (a) “strategic investments” + (b) specific **AI**/**foundation model**/**Anthropic** wording—but historically, if a name doesn’t appear in the strategic investment footnote / subsequent events, it may simply not be disclosed in SEC filings.

### What the **$51.0 million** “purchases of strategic investments” were (as far as Zoom discloses in filings) Across Zoom’s FY2024 periodic filings, the **$51.0 million** figure shows up in **two places**: 1) as a **cash outflow** line item in the investing section of the cash flow statement; and 2) as a **description of the type/accounting** of the investments (private-company equity, no control/significant influence → “measurement alternative”). Zoom **does not identify the investee(s)** behind this $51.0 million in the FY2024 filings I reviewed (i.e., the filings do not say “Anthropic”). --- ## 1) Where the **$51.0m** appears in the financial statements (cash flow) ### Q1 FY2024 (three months ended April 30, 2023) Zoom’s Form 10‑Q shows “Purchases of strategic investments” of **$(51,000)** (in thousands), i.e., **$51.0 million** cash outflow. ["Purchases of strategic investments | (51,000)"](0001585521-23-000128|0) Zoom’s MD&A narrative also explicitly explains investing cash flow usage included “purchases of strategic investments of $51.0 million.” ["purchases of strategic investments of $51.0 million"](0001585521-23-000128|0) ### Q2 FY2024 roll-forward (six months ended July 31, 2023) In the next 10‑Q, Zoom again attributes investing cash flow usage to “purchases of strategic investments of $51.0 million,” and it also shows **proceeds from strategic investments of $107.2 million** over the six-month period. ["purchases of strategic investments of $51.0 million"](0001585521-23-000194|0) ["Proceeds from strategic investments | 107,244"](0001585521-23-000194|0) --- ## 2) What Zoom says those **$51.0m** investments *were* (type + accounting) In the same Q1 FY2024 10‑Q, Zoom adds a specific explanatory paragraph: - The $51.0 million consisted of **“strategic investments in equity securities of private companies.”** ["$51.0 million of strategic investments"](0001585521-23-000128|0) ["equity securities of private companies"](0001585521-23-000128|0) - Based on the terms of the securities, Zoom determined it **did not have a controlling interest** and **did not have the ability to exercise significant influence** over the investees’ operating/financial policies. ["do not have a controlling interest"](0001585521-23-000128|0) ["ability to exercise significant influence"](0001585521-23-000128|0) - Therefore, the investments were accounted for under the **“measurement alternative method.”** ["measurement alternative method"](0001585521-23-000128|0) This is the most “granular” disclosure Zoom provides about the $51.0m in FY2024 filings: it’s about **instrument type** (private-company equity securities) and **GAAP accounting** (measurement alternative), not about the specific company names. ["private companies"](0001585521-23-000128|0) --- ## 3) How that $51.0m shows up in Zoom’s “Strategic investments” footnote (balance-sheet categorization) Zoom’s Q1 FY2024 10‑Q includes a table that breaks “Strategic investments” into measurement categories: **Fair Value**, **Measurement Alternative**, and **Equity Method**. ["Measurement Alternative"](0001585521-23-000128|0) In that same filing, the “Strategic investments” table shows: - **As of Jan 31, 2023** (FY2023 year-end): strategic investments total **$398.992m** (in thousands) and “measurement alternative” was **$118.763m**. ["Strategic investments | 398,992"](0001585521-23-000128|0) ["Measurement Alternative | 118,763"](0001585521-23-000128|0) - **As of Apr 30, 2023** (end of Q1 FY2024): strategic investments total **$452.267m** and “measurement alternative” was **$186.232m**. ["Strategic investments | 452,267"](0001585521-23-000128|0) ["Measurement Alternative | 186,232"](0001585521-23-000128|0) **Important nuance:** this table is a *balance-sheet snapshot*; it doesn’t say that the full change equals the $51.0m purchase (because it can also move due to observable price changes, impairments, reclassifications, etc.). The filing does not provide an investee-level rollforward that ties the $51.0m to a named company. ["measurement alternative method"](0001585521-23-000128|0) --- ## 4) FY2024 10‑K adds broader FY2024 totals (and puts the $51m in context) Zoom’s FY2024 Form 10‑K (year ended Jan 31, 2024) expands from the quarterly $51m figure to full-year totals: - Zoom states that **during FY2024**, it made **$70.5 million** of strategic investments in **equity securities of private companies** (again: no control/significant influence → measurement alternative). ["made a total of $70.5 million"](0001585521-24-000030|0) ["equity securities of private companies"](0001585521-24-000030|0) ["measurement alternative method"](0001585521-24-000030|0) - It also states that **during FY2024**, it sold **$169.9 million** of strategic investments in **equity securities of public companies**. ["sold a total of $169.9 million"](0001585521-24-000030|0) ["equity securities of public companies"](0001585521-24-000030|0) So, filings support that the **$51.0m** in Q1 FY2024 appears to be part (but not necessarily all) of the **$70.5m** FY2024 private-company strategic investment purchases. ["In the first quarter of fiscal year 2024"](0001585521-23-000128|0) ["During the fiscal year ended January 31, 2024"](0001585521-24-000030|0) --- ## 5) The accounting policy that governs these “strategic investments” (what it means for disclosure) Zoom’s FY2024 10‑K describes its policy for strategic investments: - Publicly held equity securities: measured using quoted prices, with changes recorded through “gains (losses) on strategic investments, net.” ["Publicly held equity securities are measured using quoted prices"](0001585521-24-000030|0) ["gains (losses) on strategic investments, net"](0001585521-24-000030|0) - Privately held equity securities without readily determinable fair values: recorded at cost and adjusted for impairments and for **observable price changes** in the same/similar securities from the same issuer (the “measurement alternative”). ["recorded at cost"](0001585521-24-000030|0) ["observable price changes"](0001585521-24-000030|0) ["measurement alternative"](0001585521-24-000030|0) - Zoom says it assesses its privately held debt/equity strategic investment portfolio quarterly for impairment indicators, and in FY2024 the impairment recognized was “immaterial.” ["assess... quarterly"](0001585521-24-000030|0) ["immaterial amount of impairment"](0001585521-24-000030|0) This policy framework is consistent with **why you don’t see investee names**: private-company equity under the measurement alternative is generally carried at cost unless there’s an observable transaction or impairment trigger, and Zoom’s disclosures here remain aggregated. ["Privately held equity securities without a readily determinable fair value"](0001585521-24-000030|0) --- # Key takeaway (filings-only) **Filings confirm** that Zoom spent **$51.0 million** in **Q1 FY2024** on “strategic investments,” and that these were **private-company equity securities** accounted for under the **measurement alternative** due to **no control / no significant influence**—but the filings **do not name** the underlying company (Anthropic or otherwise). ["Purchases of strategic investments | (51,000)"](0001585521-23-000128|0) ["equity securities of private companies"](0001585521-23-000128|0) ["measurement alternative method"](0001585521-23-000128|0) If you want, I can continue by searching **page 2+** of the results set for any other FY2024-era disclosures that mention (a) “strategic investments” + (b) specific **AI**/**foundation model**/**Anthropic** wording—but historically, if a name doesn’t appear in the strategic investment footnote / subsequent events, it may simply not be disclosed in SEC filings.