Hot video meeting startup Zoom filed to go public, and it's profitable
- Zoom, the $1 billion video conferencing startup, publicly filed for an IPO on Friday.
- The company didn't price its upcoming IPO, but indicated in the filing that it will list on the Nasdaq under the ticker symbol "ZM."
- The company is profitable, and grew revenue 118% in fiscal 2019.
- Zoom was last privately valued at $1 billion or more.
Zoom, the $1 billion video conferencing startup that competes with Cisco WebEx, publicly filed its S-1 on Friday. The news confirms Business Insider's earlier reporting that the company aims to go public in April.
This makes Zoom the latest in a long list of IPO hopefuls expected to closely follow ride-hailing startup Lyft's big market debut, which is anticipated at the end of next week. Pinterest also has its eye on an April IPO and could list Friday as well, the Wall Street Journal reported Thursday.Zoom didn't price its upcoming IPO in its S-1, but it indicated in the filing that it will list on the Nasdaq under the ticker symbol "ZM."
Unlike many of the other 2019 IPO candidates, Zoom is profitable. The company saw $7.5 million in profits in 2019, after losing $3.8 million in 2018.
It's also growing. The company brought in $330.5 million in revenue in fiscal 2019, up 118% from $151 million in fiscal 2018.
The more obvious ticker symbol, "ZOOM," is already taken by an unrelated company called Zoom Technologies, which opened at just $0.04 on Friday. That other Zoom's shares shot up 900% on the markets following news of this Zoom's IPO filing.
Zoom was founded in 2011 by CEO Eric S. Yuan, who was previously vice president of engineering at the video-conferencing company WebEx. Yuan joined Cisco in 2007 when it bought WebEx for $3.2 billion.
Zoom, which sells subscriptions for enterprise-grade video-conference services, is used by companies including Uber and Box.
Like many other IPO candidates in years past, Zoom will go public with a dual-class structure which allots Class A holders one vote per share, compared to 10 votes per share for Class B share holders. This will particularly benefit Yuan, who owns 22% of the company.
Among Zoom's biggest outside shareholders are Emergence Capital Partners, which owns 12.5% of the company, and Sequoia Capital, which owns 11.4%, Digital Mobile Venture, which owns 9.8%, and Bucantini Enterprises Limited, which owns 6.1%.