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Video conferencing company Zoom prices IPO at $36 per share, giving it a $9.2 billion valuation - 9 times its last private valuation

Apr 18, 2019, 04:10 IST

Zoom

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  • Video communication company Zoom priced its IPO at $36 per share on Wednesday, according to a source familiar with the process.
  • This values Zoom at $9.2 billion, up from its last private valuation of $1 billion.
  • The company is expected to start trading Thursday on Nasdaq under the ticker "ZM."

The video communication company Zoom priced its IPO at $36 per share on Wednesday, above its expected range, a source familiar with the process told Business Insider.

This values the company at $9.2 billion - about 9 times its last private valuation of $1 billion in 2017. CNBC previously reported the price.

The company is expected to start trading Thursday on Nasdaq under the ticker symbol "ZM." It will be joined by Pinterest, another unicorn company valued over $1 billion, which is also expected to list on Thursday, this time on the New York Stock Exchange under the ticker "PINS."

Zoom's IPO price comes in above the $33 to $35 price range set by the company in a filing on Tuesday. An earlier version of Zoom's S-1 from April 8 had set its range much lower, at $28 to $33 per share.

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Read more: Billion-dollar startup Zoom filed to go public - and shares of a totally unrelated company also called called Zoom shot up 1,100%

Zoom, which sells cloud video communication software for use in the workplace, was founded in 2011 by CEO Eric 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.

Unlike other unicorns in this year's IPO cohort, Zoom is profitable.

The company reported $330.5 million in revenue in fiscal 2019, which ended January 31. That's up 118% from $251.4 million in fiscal 2018. In 2019, $6 million of that revenue was profits.

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