The San Jose, Calif.-based company, whose videoconferencing platform has become a pandemic essential, on Tuesday also said it expects to grant its underwriter a 30-day option to buy up to an additional $225 million of Class A shares at the public offering price, less underwriting discounts and commissions.
Founded in 2011, Zoom raised $447.9 million in net proceeds through its initial public offering, according to one of its quarterly filings in 2019. Its shares rose 0.4% Tuesday and have surged over the past year as homebound workers and students have been using the company’s services during the coronavirus pandemic.
Zoom’s global boost in popularity has put it at the center of a rivalry among larger technology companies such as
that are pushing their services for managing daily life during the pandemic. Zoom in November posted a record $772.2 million in quarterly sales and lifted its outlook.
Zoom has seen a large increase in its paying subscriber numbers during the pandemic. The company expects its free service to continue weighing on profitability, Zoom said in November. “With the uncertainty of the longevity of the pandemic, it is unclear how long gross margins will be impacted as we remain committed to supporting the global community,” Finance Chief
With a virtual-reality headset and a virtual meeting platform like Spatial, you can meet up and collaborate with your colleagues as if you were in a real office space. WSJ’s Joanna Stern transformed into a holographic avatar and got in a virtual elevator to test it out. Photo illustration: Adam Falk
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