The Zoom Video Communications Inc. (ZM) Story

In a year that witnessed several tech unicorns making their public market debuts, Zoom Video Communications Inc. emerged as one of the standout performers of 2019.

Founded in 2011 by Eric Yuan, a former Cisco executive, Zoom had quickly become a go-to choice for video conferencing, distinguishing itself with its user-friendly platform and reliable service.

On April 18, 2019, Zoom Video Communications took the plunge into the public market, launching its initial public offering (IPO) under the ticker symbol "ZM." The company priced its shares at $36, but demand quickly drove up the opening price to $65, giving the company an impressive market valuation of $16 billion.

Several factors contributed to Zoom's positive IPO reception:

Profitability: Unlike many other tech companies that went public around the same time, Zoom was profitable before its IPO, a rarity in Silicon Valley's startup scene.

Robust Growth: Zoom's revenues showed strong year-on-year growth, further cementing investor confidence.

Positive User Experience: Zoom's platform was lauded for its simplicity, quality, and efficiency, leading to substantial organic growth.

In hindsight, the timing of the IPO was fortuitous. With the unexpected onset of the COVID-19 pandemic in early 2020, businesses, educational institutions, and casual users worldwide turned to video conferencing solutions, with Zoom seeing unprecedented adoption rates.

While Zoom's IPO journey began in 2019, the company's relevance and growth surged in 2020 due to global circumstances, solidifying its position as a staple tool for remote communication and collaboration.