By Wallace Witkowski, MarketWatch
Zoom Video Communications Inc. is looking to join the new wave of Silicon Valley startups pulling the trigger in 2019 to go public, according to a filing with the Securities and Exchange Commission late Friday.
San Jose, Calif.-based Zoom said it plans to raise $100 million in the offering although that number is often a placeholder that gets revised later on. Zoom had a private valuation of $1 billion as of 2017, according to The Wall Street Journal .
The company has raised $145.5 million through five rounds of funding since 2011 with Sequoia Capital as lead investor, according to Crunchbase. Sequoia invested $100 million in Zoom back in January 2017.
“We built our platform from the ground up to be cloud-native and video-first, unlike other approaches that have attempted to add video to an aging, pre-existing conference call or chat tool,” the company said in its filing.
Zoom said it competes with legacy web-based meeting providers like Cisco Systems Inc.’s /zigman2/quotes/209509471/composite CSCO +0.47% Webex and Microsoft Corp.’s /zigman2/quotes/207732364/composite MSFT +1.28% Skype for Business, bundled service providers that offer videoconferences like Alphabet Inc.’s /zigman2/quotes/205453964/composite GOOG +0.93% /zigman2/quotes/202490156/composite GOOGL +0.90% Google, and point solutions providers, including LogMeIn Inc. The company cited estimates that the videoconference market could be $43.1 billion in 2022.
The company reported breaking even in fiscal 2019 with revenue rising to $330.5 million from $151.5 million in fiscal 2018. Zoom reported an adjusted profit of 3 cents a share for fiscal 2019.
Zoom plans to list on the Nasdaq under the symbol “ZM,” and named Morgan Stanley, JP Morgan, Goldman Sachs and Credit Suisse as among the underwriters of the deal.