Zoom

2.27 (3.35%)

NASDAQ:ZM | Last traded on 11-15-2019 4:00 PM

Market Reaction

Offer Price

$36.00

Today Open Price

$68.13

Change Since IPO

Market Cap

$19B

Day High

$71.10

Day Low

$67.91

View Stock Chart

Featured Analysis

Zoom’s profitability is a rarity in 2019’s tech IPO market. However, they are trading at around 25 times trailing sales. Undeniably overpriced, but at least they are netting a profit. Not a great buy, but not a bad one.

Company Data

Location

San Jose, CA

Valuation

$866.5M

-

Founded

2011

Total Shares Offered

24,070,086

-

Employees

1,702

IPO Date

2019-04-18

Background Information

Zoom Video Communications, Inc. is a cloud-computing company that specializes in offering remote conferencing. Remote conferencing and collaboration can range from video conferencing to mobile chatting to online meetings. They operate worldwide, most notably in the Americas, Europe, Africa, and Asia.

Financial Analysis

Years 2016 2017 2018
Revenue growth -- 149% 118%
Net profit margin -0.02%-2.5%2.3%
Valuation -- -- $8.9B
Revenue multiple -- -- 27x
Profit multiple ----1113x

Financial Information

Income Statement ($M) 20162017 2018
Revenue61151331
Cost of goods sold123161
Gross profit48121270
Total operating expense48126263
EBIT0(5)6
Pretax profit0.16(4)8
Net income(0.014)(4)8
Balance Sheet ($M) 20162017 2018
Total current assets183277
Cash and cash equivalents3664
Total assets215355
Total current liabilities69152
Total liabilities82202
Total shareholder equity277
Total liabilities and equity215355
Cash Flow Statement ($M) 201620172018
Net cash from operating activities9 1951
Net cash from investing activities(3) (113)(40)
Net cash from financing activities100 (4)18
Net increase in cash and cash equivalents107 (98)29