Translated material
Pinterest and Zoom held IPOs
The year of big tech IPOs continues, with taxi service Lyft followed by social photo hosting Pinterest and business video conferencing service Zoom. The companies valued themselves approximately the same (about $10 billion), and this is a good base to compare their successes in the future.
- This is the largest U.S. social offering since Snap in 2017. Pinterest has 250 million monthly audience, which is comparable to Twitter (about 320 million).
- The company sold shares to investors at $19 , which is higher than the announced range ($15-17).
- Pinterest received $1.4 billion based on a company-wide valuation of $10.1 billion, or $12.7 billion including all options. Trading will open on the NYSE on April 18.
- Pinterest's IPO valuation is still lower than its last round of investment in 2017 ($12 billion).
- Like Lyft, Pinterest is losing money. But the loss is small ($63M in 2018) and revenue is growing fast (+60% to $756M).
- Lyft is already 19% below its IPO level, but Pinterest promises to outperform both Lyft and Snap, the WSJ notes .
Zoom
- Cloud video conferencing service is a niche but successful and fast growing product.
- The company also sold shares above the stated range - at $36 instead of $33-35. Trading on the Nasdaq will also begin on April 18.
- Zoom will receive about $350 million from the IPO, the valuation of the entire company is $10.5 billion. This is 10 times more than in the 2017 investment round.
- Zoom has consistently cut losses to just $7.5 million in fiscal 2018 on revenue of $330 million. The company's revenue doubled in two years, to $61 million in 2017 and $152 million in 2018.
Why is it important
The publicity of Zoom and Pinterest will allow you to understand who the market will put higher - a social company with a large audience or a service company with a successful business model.