Jon C. Ogg. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. ZoomInfo, not to be confused with video chat provider Zoom Video, priced its IPO at $21 on Wednesday after previously raising the expected range to $19 to $20. Last quarter, the number of customers who paid more than $100,000 annually for Zoom's services grew 97%. Cumulative Growth of a $10,000 Investment in Stock Advisor, If You Invested $10,000 in Zoom's IPO, This Is How Much Money You'd Have Now @themotleyfool #stocks $ZM $CSCO, embarrassed by the product's customer reception, 2 Stay-at-Home Tech Stocks to Buy Right Now, Forget Snowflake, These 3 Tech Stocks Are Better Buys Right Now, 3 High-Risk, High-Reward Stocks to Add to Your Watchlist, These 3 Stocks Are Absurdly Overvalued Right Now, Copyright, Trademark and Patent Information. IPO investors are certainly richer today, but before we find out how much richer, let's take a quick look at the history of this popular video meeting platform. The stock continued to rise over the summer, topping $100, but has dropped back to around $66 as 2019 comes to a close. See you at the top! And social media company Pinterest planned to debut on the New York Stock Exchange on Thursday with losses of $63 million. Feel free to reach Brian via email: Its platform is wonderfully scalable and can serve clients ranging from small businesses to large enterprises. Zoom founder Eric Yuan is a billionaire with a net worth of $1.9 billion after Zoom's IPO valued the ... [+] company at more than $9 billion in April. His best investment was to get his kids into Foolish stocks at the young ages of 5 & 7. The video conferencing business priced its IPO above its planned range on Wednesday, confirming plans to sell shares of its Nasdaq stock, titled “ZM,” at $36 apiece, CNBC reports. Setting this initial price is a fine balance. Yuan, who is from China, came to the United States in 1997 after eight failed attempts at getting a visa over the span of about one-and-a-half years. But don't confuse it with Zoom Video -- even though its shares are soaring, too. Prior to starting his contract writer role with The Fool, he spent 30 years between IBM, Dell, and Allergan helping make their operations run better. © 2020 Insider Inc. and GmbH (Imprint). “We look at the other companies and say ‘Wow,’” he says. Disclaimer | He ultimately left to build a solution from the ground up. Zoom, a relatively under-the-radar tech unicorn, has defied expectations with its initial public offering. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. Stock Advisor launched in February of 2002. The Congressional antitrust report shows how far the major cloud platforms can go to win and keep customers. For the IPO investor who bought 278 shares, a total of $10,008, those shares have zoomed up 83% to $18,348. Zoom CEO Eric Yuan is cloud's newest billionaire worth $1.9 billion after his video communications company raised $357 million in an IPO valuing it at more than $9 billion. The goal is to set the offering price close to market price so a company can maximize the cash it receives but not so high that IPO shareholders start with losses. Investors will want to consider a split-class structure due to sponsors, founders and management. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Zoom had priced its IPO at $36 per share. Pinterest, for its part, has priced its shares above its planned range, per The Wall Street Journal. This is an incredible market-beating performance versus the S&P 500 index, which only gained 13% over the same period. Now there is yet another “new” Zoom coming to the market. Since the launch of its IPO in mid-April, Zoom stock has skyrocketed, up nearly 30% as of Monday’s open. “We feel it is the right time for us.”. While Yuan said he expects running Zoom as a public company to come with more responsibility, it’s a milestone for “great companies” that he’s happy to take. With revenue of $330.5 million last year, up 118% year-to-year, Zoom stands out from other high-profile tech IPOs of 2019 for its combination of high growth and profitability. FY = fiscal year. I edit the Midas List, Midas List Europe, Cloud 100 list and 30, I'm a senior editor at Forbes covering venture capital, cloud and enterprise software out of New York. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. If the underwriters exercise their full overallotment option, then a total of 51,175,000 shares will have been sold. It’s a moment to celebrate.”. The company initially planned to price its shares at between $28 and $32 per share, but following big demand for a piece of a profitable tech business, Zoom increased expectations, announcing plans to sell shares at between $33 and $35 apiece. This story will be updated after Zoom begins trading later on Thursday morning. One of tech’s more surprising entrants in the 2019 unicorn IPO blitz, Zoom, has minted cloud computing's newest billionaire in CEO Eric Yuan. The underwriting syndicate is massive. Along with CEO Henry Schuck, the insiders and backers include Carlyle, T.A. ], “It’s a dream coming true to be a public company,” Yuan says. If you haven’t had the chance to dive into Zoom’s IPO … Prior to the IPO date, funds and accounts managed by BlackRock and entities affiliated with Dragoneer Investment Group and with Fidelity Management & Research have indicated an interest in purchasing up to $100 million each for an aggregate of up to $300 million. Brian Withers has been a Fool since 2004 and loves to invest in companies that are disrupting the status quo. “There’s not any other reason,” he says. With the world caught up in a recession, and with the investment community rewarding safe havens during this storm, it is not uncommon for investors to get names of companies confused or mismatched. In the offering, Zoom will raise just over $350 million and investors another $396 million, giving the San Jose, California-based tech company a market capitalization of $9.2 billion. For the IPO investor who bought 278 shares, a total of $10,008, those shares have zoomed up 83% to $18,348. Yuan says he didn't intend to stay in the United States more than a few years, but eventually "the thought to go back faded away.". Zoom reported net profits of $7.6 million in its S-1 filing. All rights reserved. Doing so in the midst of so many high-profile “unicorn” peers, however, was more coincidence, according to Zoom's CEO. I'm a Fortune Magazine and WNYC alum. The company is executing well, and its IPO shareholders have benefited. Shares of the videoconferencing company began trading on the Nasdaq at $65 apiece. [Update: Zoom's stock opened at $65 and closed its first day on the market at $62 per share, giving Zoom a market cap—at least for now—of $15.9 billion, boosting Yuan's net worth to $3.3 billion. Zoom was founded in 2011 by Eric Yuan. 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Yuan started by writing code at the web-conferencing company Webex, which was ultimately acquired by Cisco in 2007 and is now known as Cisco Webex. That makes Yuan, who founded the company in 2011, cloud computing’s newest billionaire. A month ago, shares of ZOOM Technologies (whose ticker is “ZOOM”) were trading at $0.005 – far less than even their “penny stock” designation. Unfortunately, public investors, like myself, haven't fared as well. This event for Zoom Video Communications (NASDAQ:ZM) was no exception. Additional co-managers for the offering include Canaccord Genuity, JMP Securities, Mizuho Securities, Piper Sandler, Raymond James, Stifel and SunTrust Robinson Humphrey. When he's not writing, you can find Brian riding his bike around the Research Triangle Area in North Carolina. 18, 2019, the stock spiked up 80% and eventually settled at $62, a 72% premium to the IPO price. The stock has returned over 200% in … Zoom raised a total of $145 million from venture capitalists before filing to go public, It posted $330 million in revenue in the year ending January 31, 2019 with a gross profit of $269.5 million, It more than doubled revenues from 2017 to 2018, ending 2017 with $60.8 million in revenue and 2018 with $151.5 million, Its losses have shrunk from $14 million in 2017, $8.2 million in 2018 and just $7.5 million in the year ending January 2019. The ... Zoom Technologies' stock also got a boost Thursday. Prior to joining Zoom, he was a corporate vice president of engineering at Cisco. The company has been successful in winning big clients and upselling existing ones. A public investor with perfect timing could have bought at the low, just under $60, and would be sitting on a gain of around 10%. This holistic enterprise solution makes it easy to connect employees via video no matter where they are. Ride-hailing app Lyft went public in March with growing losses approaching $1 billion. As its public debut approached, Zoom raised the range for its initial pricing and then ended up pricing its shares over that range at $36. Eric Yuan was one of the founding engineers for WebEx, one of the early video meeting hosting services. Market data powered by FactSet and Web Financial Group. All rights reserved. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Meet the 'New Zoom' IPO Coming to the Stock Market. I’m very proud of our employees. Zoom plans to sell 9,911,434 shares of Class A common stock in the listing, to bring in about $350 million in new capital. The offering gives Zoom an initial market cap of roughly $9 billion, or nine times that of its most recent private market valuation. If you haven’t had the chance to dive into Zoom’s IPO prospectus, here’s a quick run-down of its financials: Zoom is backed by Emergence Capital, which owns a 12.2 percent pre-IPO stake; Sequoia Capital (11.1 percent); Digital Mobile Venture, a fund affiliated with former Zoom board member Samuel Chen (8.5 percent); and Bucantini Enterprises Limited (5.9 percent), a fund owned by Chinese billionaire Li Ka-shing. YOY = year over year. ZoomInfo Technologies has set a price range of $16 to $18 per common share for its initial public offering (IPO) of what is currently 44.5 million shares. As the service grew, it seemed like every customer he talked with was frustrated and unhappy with the product. I'm a senior editor at Forbes covering venture capital, cloud and enterprise software out of New York. 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