Zoom Video Communications didn’t just name its own peak, but the video conferencing superstar still has good reasons to invest in investor enthusiasm.
Zoom filed papers on Tuesday for a common sale value of $ 1.5 billion, its first offer since it went public in April 2019. The shares will be sold by the company, and Zoom included a standard boiler plate definition in his file that the money would be used for “Working capital and general corporate purposes,” with the possibility that the money could also fund money even though there are no standard contracts at work.
Zoom’s video conferencing industry is still thriving, largely thanks to Covid-19, but investors are already embracing what a post-pandemic life could mean for the company. The once high stock is now 40% off its highest level in mid-October. And while it still has rich value at around 30 hours of sales, it is no longer the most popular play among cloud stock. At least a dozen now carry higher multiples compared to projected sales.
But Zoom is still valued at nearly $ 100 billion, a level that software companies typically don’t reach until they’ve established multiple lines of business. So there is still pressure on the company to show that a pony is not one trick.
The company announced Tuesday that it has now sold 1 million seats for its Zoom Phone service, which replaces office phone systems. This is a potentially huge market, but also one with well-established competitors along with newer rivals such as Microsoft, Google and RingCentral.