Next to Third, Zoom has sky-high gross margins. As such, while ZM stock is a long-term holding, investors can afford to wait for better prices to enter for that long haul.Article printed from InvestorPlace Media, https://investorplace.com/2019/04/zoom-is-a-great-company-but-post-ipo-pop-valuation-looks-full/.Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. So far, the company has raised $160.5 million in five funding rounds with Emergence Capital Partners, Sequoia Capital and Emergence as lead investors, according to Crunchbase. Also, employee work forces are getting younger, and as a result, want to see all these up-and-coming trends play out at the office.Second, Zoom is a leader in that market with rapidly expanding market share.
By using this site you agree to the Today, the stock trades near $70. There are so many tailwinds at play here. Now, it’s nearly a $70 stock. After the IPO, the company will have 24.7 million class A shares outstanding, which will entitle holders to one vote, and 233.2 million class B shares outstanding, which will have 10 votes and will be convertible to class A shares. I knew that we would have to start from scratch to do it right,” Yuan said.Zoom is offering 9.9 million class A shares in the IPO to raise up to $346.9 million, down from previous plans to offer 10.9 million class A shares to raise $348.1 million.
The Zoom IPO was a success was because of the impressive financial progress made by the company.
Video conferencing is a huge growth market in the enterprise world. Find out if it delivered for IPO shareholders.
The IPO filings revealed a profit of $7.6 million in fiscal 2019 on revenue of $330.5 million.
All rights reserved. Zoom has raised $145 million to date from investors, including Emergence Capital, which owns a 12.2 percent pre-IPO stake; Sequoia Capital (11.1 percent pre-IPO … Investor demand was so high at those prices that the list price range for the Zoom IPO eventually moved north to $33-$35. “This made me unhappy. Video is considered the tool-of-choice when it comes to digital communication.Further, you have this massive shift from on-site work to remote work, which has been enabled by technology trends and empowered by the gig economy. Zoom's earnings, which topped expectations, suggested that technologies enabling remote business functions are still seeing explosive growth due to the pandemic.
If You Invested $10,000 in Zoom's IPO, This Is How Much Money You'd Have Now Zoom is about creating happiness. Zoom's market capitalization exceeds those of Lyft and Pinterest. Shares of DocuSign Inc. are up more than 16% in Tuesday morning trading after Zoom Video Communications Inc. reported July-quarter results showing that it made more than four times as much revenue as it did a year ago.
Follow Wally on Twitter at: @wmwitkowski. Near-term upside is capped by what is already a stretched valuation. A 10-15% market share on that implies $3.75 billion in revenue, at the midpoint, by 2025.
Based in San Francisco, his focus is on U.S. equities.
That’s a 100%-plus increase in just a few days and it’s stayed there. Eric Yuan, Zoom’s president, chief executive and chairman, said in a letter filed with the S-1 that keeping both customers and employees happy was Zoom’s mission. He previously reported for trade publications in covering the drug and medical-device industries back to 1998. After such a huge rally, one has to look at the underlying fundamentals, and see if the valuation today is worth it.When you do that, it becomes obvious that ZM stock is very richly valued — perhaps too richly valued. But, few have had as successful of a Wall Street debut as The hyper-growth video conferencing company originally priced its IPO in the $28-$32 range. Other Class B holders include Sequoia Capital with 27.6 million shares, or 11.1% of the votes. These robust gross margins allow for robust profit potential at scale.Fourth, Zoom is already profitable. Zoom Video Communications Inc. is joining an already active season of initial public offerings, and the videoconferencing company is looking for a high valuation …
Investors aren’t applying the same logic to the Zoom IPO because it’s an IPO.
The stock kept moving higher the next day, and today, it trades at $67, nearly 90% above the already twice-boosted IPO price.Why the huge demand? As such, upside in the near term seems limited by a stretched valuation. Oh, and the company is All in all, Zoom is simply a really good company. I would visit customers, and they would tell me how unhappy they were with the technology in the videoconferencing market,” said Yuan. That, however, isn’t counting if the stock prices above its range or sees its stock rally in its first day of trading, as Zoom is looking to go public as the Renaissance IPO ETF For the past several years, gross margins have hovered around 80%, and management’s made gradual improvements. Sequoia invested $100 million in Zoom back in January 2017. Even under aggressive long-term growth assumptions, I think today’s valuation is slightly stretched. But, my numbers say they should.Current estimates peg the video conferencing market at $20 billion by then. Unlike other hyper-growth companies, Zoom isn’t spending an arm and a leg to sustain that big growth. That seems light to me. Copyright © 2020 InvestorPlace Media, LLC. The company now boasts a $1 billion valuation, putting it … That’s a premium to Okta Inc. As such, upside in the near term seems limited by a stretched valuation.To recap, the Zoom IPO was a huge success because Zoom is a great company, and at $30 per share, the stock was way undervalued considering the company’s long-term growth potential.But, after a huge IPO pop, Zoom stock now seems fully valued. Then, Zoom stock soared more than 80% on its public debut to above $60. Instead, I think there’s a pullback coming around the corner and investors can afford to wait for better entry points.In a nutshell, Zoom is a great company oozing with long-term profit growth potential, and that’s why the IPO was so successful.First and foremost, the company is in the right space. Based on a growth average 20x forward multiple, that implies a reasonable 2024 valuation target of $27 billion.
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