Software maker Zoom files IPO documents Zoom Video

Zoom Video Communications Inc. filed its initial public offering documents Friday and plans to list under the ticker ZM on the Nasdaq Global Select Market. Zoom, which makes video communications software, reported net income of $7.6 million, vs. losses of $8.2 million in the year-prior quarter. Because of a $7.6 million charge for undistributed earnings attributable to participating securities, Zoom reported earnings of zero cents a share in fiscal 2019, vs. losses of 11 cents a share in fiscal 2018. Revenue rose to $330.5 million in fiscal 2019 up from $151.5 million in fiscal 2018. The San Jose, Calif.-based tech company had $66 million in cash and equivalents at the end of fiscal 2019 and free cash flow of $29.2 million. Zoom had a private valuation of $1 billion as of 2017, according to The Wall Street Journal. Morgan Stanley, J.P. Morgan, Goldman Sachs & Co. and Credit Suisse are listed as underwriters, among other investment banks. The filing with the Securities and Exchange Commission says the company plans to raise $100 million, though that figure is often a placeholder and will increase as Zoom approaches its listing date.

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