Zoom, a profitable unicorn, files to go public

GettyImages-925049702.jpg?w=651

Zoom, the video conferencing startup valued at $1 billion in early 2017, has filed to go public on the Nasdaq as soon as next month.

The company joins a growing list of tech unicorns making the leap to the public markets in 2019, but it stands out for one very important reason: It’s actually profitable.

Zoom was founded in 2011 by Eric Yuan, a co-founder of WebEx, which sold to Oracle for $3.2 billion in 2007. Before launching Zoom, he spent four years at Cisco as its vice president of engineering. In a conversation with TechCrunch last month, he said he would never sell another company again, hinting at his dissatisfaction at WebEx’s post-acquisition treatment being his motivation for taking Zoom public as opposed to selling.

Zoom, which raised a total of $145 million to date, posted $330 million in revenue in the year ending January 31, 2019, a remarkable 2x increase year-over-year, with a gross profit of $269.5 million. The company similarly more than doubled revenues from 2017 to 2018, wrapping fiscal year 2017 with $60.8 million in revenue and 2018 with $151.5 million.

The company’s losses are shrinking, from $14 million in 2017, $8.2 million in 2018 and just $7.5 million in the year ending January 2019.

Zoom is backed by Emergence Capital, which owns a 12.5 percent pre-IPO stake, according to the IPO filing. Other investors in the business include Sequoia Capital (11.4 percent pre-IPO stake); Digital Mobile Venture (9.8 percent), a fund affiliated with former Zoom board member Samuel Chen; and Bucantini Enterprises Limited (6.1 percent), a fund owned by Li Ka-shing, a Chinese billionaire and among the richest people in the world.

Morgan Stanley, JP Morgan and Goldman Sachs have been recruited to lead the offering.

Let’s block ads! (Why?)

Source: https://techcrunch.com/2019/03/22/zoom-a-profitable-unicorn-files-to-go-public/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29
Proactive Computing found this story and shared it with you.
The Article Was Written/Published By: Kate Clark

Author: Droolin' Dog News Team