Profitable Videoconferencing Firm Zoom Surges 72% In Nasdaq Debut
Zoom kicks off its first day of trading on the Nasdaq with a massive 72% stock jump, reaching a $15.9 billion market value. The videoconferencing company stands out in the 2019 IPO class by actually turning a profit.
Videoconferencing company Zoom begins trading on the Nasdaq under the ticker symbol "ZM" and experiences a massive 72% surge to close at $62 per share. This impressive jump gives the software company a market valuation of $15.9 billion on its first day. Zoom prices its initial public offering above its expected range at $36 per share, easily surpassing its initial estimates from just a few weeks prior.
Unlike many other technology startups going public this year, Zoom distinguishes itself by being consistently profitable. The company earns $7.58 million in net income last year while its revenue surges 118% to $330.5 million. CEO Eric Yuan emphasizes this focus on profitability during roadshow conversations, noting that generating actual cash sets Zoom apart from competitors.
Zoom's successful debut occurs alongside other major tech offerings like Pinterest, Lyft, and PagerDuty as the 2019 IPO market heats up. The company raises $356.8 million through the sale of 9.91 million shares, while existing shareholders sell an additional 11 million shares. Despite the staggering first-day gains and a sky-high valuation multiple, Yuan urges employees to ignore the stock price and focus on acquiring new customers.