Profitable Video Conferencer Zoom Nears IPO Amid CFO Scrutiny
Zoom sets its IPO price range between $28 and $32 per share, targeting a fully diluted market value of $8.7 billion. The company's CEO publicly addresses an anonymous tip regarding the CFO's past workplace conduct but confirms she will remain in her role.
Zoom prices its initial public offering between $28 and $32 per share as it prepares to trade on the Nasdaq under the ticker symbol "ZM." The profitable video conferencing company plans to raise up to $348.1 million through the sale of 10.9 million Class A shares. This offering grants Zoom a fully diluted market value of $8.7 billion, marking a massive increase from its $1 billion private valuation in 2017.
The business demonstrates impressive financial growth, posting $330 million in revenue for the year ending January 31, 2019, which represents a two-fold increase year-over-year. Despite these stellar financials, the road to the public market includes a last-minute hurdle involving Chief Financial Officer Kelly Steckelberg. An anonymous source informs Zoom about an undisclosed, consensual relationship that occurred during Steckelberg's tenure at a previous employer.
Founder and CEO Eric Yuan publishes an open letter explaining that the board of directors conducts a thorough investigation into the matter. The board ultimately decides that Steckelberg will stay on as CFO, citing her ownership of the situation, her regret, and her excellent performance since joining Zoom. Keeping the CFO is a critical win for the company, as she leads the complex roadshow and manages daily financial operations just days before the final IPO pricing.