Leaders in the video conferencing marketplace, Zoom, recently announced that their trading value had hit its $20 billion market cap, only a month after the business initiated its IPO last month. For years, Zoom has been building momentum as a global competitor in the video space, offering a range of high-quality products for companies in need of simple, plug-and-play video communications.
When Zoom chose to launch their IPO in April 2019, many experts predicted that the brand would do very well on the market. After all, the company has only just introduced a range of new updates to its portfolio, including Zoom Phone. However, no-one could have predicted just how phenomenal Zoom's success would be.
The company had already grown by 120% since it last sold shares at a valuation of around $9.2 billion in April 2019. Now, Zoom is trading at a valuation of an incredible $20 billion.
Putting Zoom's Success into Context
Now, $20 billion is a huge number in anyone's eyes - but let's take a closer look at how impressive that valuation is.
First of all, Zoom isn't the only "unicorn" company that went public recently. Pinterest and Lyft are two other well-known brands that also entered the market at a similar time. However, Lyft is only worth around $17.9 billion at this time, and Pinterest is trading at around $15.3 billion. In other words, Zoom has blown both of these big-name companies out of the water.
Of all three companies mentioned above, Zoom is the only one that's currently turning a profit. The business revealed an adjusted net income of about $5.7 million in the fourth quarter, as well as a net revenue of $105.8 million. The stock for Zoom is currently trading at about 33% above the average price predicted by market analysts.
