One of the world’s top videoconferencing platforms, Zoom Video Communications (ZM), has raised $2 billion in a secondary share issue. The Wall Street Journal reported that Zoom CFO Kelly Steckelberg said that Zoom initially expected to receive $1.5-1.75 billion but received more thanks to investors’ high demand.
According to a Zoom Inc (ZM) press release, the developer sold approximately 6 million shares of its Class A common stock for $340 per share. Steckelberg said the company’s cash on hand has almost doubled thanks to the addition of this issue.
A financial director quoted in the WSJ said Zoom Inc (ZM) would use the raised capital to expand sales and marketing, in addition to expanding data centers. An expansion of its research facility in Singapore and India was announced last year by the company.
Steckelberg admitted that some of the funds would be spent on mergers and acquisitions. More details on Zoom’s financial plans will reveal in the company’s upcoming income statement, she added.
In the last quarter, Zoom posted good financial results. The first quarter of 2020 amounted to $777.2 million, a rise of $600 million compared to the same period last year. Operating profit reached $192.2 million. The company experienced a loss of $1.7 million a year earlier. In October, Zoom had about $70 million in debt, according to S&P Global Inc.
As a result of the pandemic and the increasing trend towards digitalization in society, Zoom Inc (ZM), a technology company has begun to benefit from the pandemic, as many individuals have found themselves working from home and using Zoom’s software to connect with colleagues, family, and friends.