Zoom, the video conferencing company relying on cloud technology, thus taking a market share in a rather profitable sector, has had more than a successful IPO sale on April 18th, 2019.
Zoom joined the growing list of tech companies going public, presented as one of the most profitable company in the category, which brought an IPO estimation of over 9 billion dollars for Zoom.
Zoom (ZM) Ends the First IPO Sale 70% Up from Its Starting Price
Originally planning on starting the IPO sale between the value of 28$ and 32$, changing the price range for share price ahead of its IPO to the price range of 32$ to 35$, while Zoom IPO actually started at 36$ per share.
Zoom managed to close the first trading session at 62$ per share, hitting a high price of 66$ per share, soaring by 70% during the first trading session.
Zoom Enterprise Value More than 49 Times the Company’s Annual Revenue
Before the initial sale of Zoom IPO, the top valued tech company in the category was Zscaler Inc. (ZS), valued 30 times its annual revenues.
However, after the first IPO sale where Zoom shares were presented to investors, soaring to 70% in a day brought Zoom to the status of a tech company with the highest enterprise value through estimation of 49 times its annual revenue.
Zoom’s Eric Yuan Comfortable with Evaluation
Eric Yuan spoke to MarketWatch on the day of the IPO sale from New York, stating that he has nothing against the high evaluation by 49 times the company’s year to year revenue.
Yuan, who is the president, CEO and chairman on the head of Zoom, also stated that the company is focusing on bringing more users to their platform alongside aiming to get a larger market share in the sector, while Yuan holds around 21.1% stake in Zoom, worth 3.6 billion dollars with the price of 66$ per share.