By Spencer Feingold
The video conferencing company Zoom made its public debut Thursday morning on the Nasdaq, trading shares at $65 a piece, zooming up over 80 percent from its initial public offering price.
“Zoom really is transforming the way people work and the investors believe in that,” Kelly Steckelberg, the company’s chief financial officer, told Cheddar in an interview Thursday.
The company announced Wednesday that it planned to sell over 20 million shares at $36 a piece — giving the business a $9.2 billion valuation. Zoom ($ZM) had increased its expected share price range twice since filing to go public in March.
The San Jose based company, which works to make “video communications frictionless,” services major customers such as the California State University System and Uber.
Zoom joins several other Silicon Valley companies to go public in recent weeks. However, unlike the other businesses, such as Pinterest ($PINS) and Lyft ($LYFT), Zoom went public as a profitable company.
“We’ve really invested for growth over the long term but have done it in a thoughtful and disciplined way,” Steckelberg said.
Zoom brought in over $330 million last year, a massive increase from the $151 million in revenue in 2017. The company’s net income for 2018 was $7.58 million, according to its filing with the federal Security and Exchange Commission.
“We’ve been generating free cash flows for each of the last three years, so this is not a new phenomenon for this company,” Steckelberg added. “It is the approach we have always taken.”
The company said its success is driven largely by its reliable technology, customer support, and scalability. In its SEC filing, Zoom also touted its “video-first cloud architecture,” which differentiates the company from other communication firms that have added video services to their other offerings.
“Our user interface, our technology, our hardware, was built from the ground up to be video first,” Steckelberg said.
Steckelberg added that as a public company, Zoom hopes to expand international growth, increase business-to-business services, and introduce new products. The company noted that the market of video communication is estimated to be over $43 billion in 2022.
“Today is a milestone for Zoom, but I see ahead the many milestones we have to look forward to as a company. I expect some of them to be even more exciting than today,” Zoom’s president Eric Yuan said in a statement.
Zoom listed an inability to attract new customers, increased competition, and an inability to sustain revenue growth as risk factors in its SEC filing.