Zoom Addresses Conduct of CFO’s Past Workplace Ahead of IPO

Zoom is the only profitable unicorn to go public. On Monday morning, the initial public offering price was between $28 and $32 (per share). The video conferencing startup plans to trade on Nasdaq under “ZM”, the ticker symbol.

Zoom was valued $1 billion in the year 2017. It initially has filed to become public in March. The amended IPO filing reveals the company aims to raise up to $348.1 million by the sale of 10.9 million shares of Class A. The public offering will award Zoom a diluted market value worth $8.7 billion. It is more than 8x times increase to the company’s latest private market value.

The company has earned praise for its astonishing financials. On January 31, 2019, in the year-end, Zoom garnered $330 million in revenue; it is a remarkable 2x increase with $269.5 million gross profit. But the company had to go through hiccups on its way to IPO.

Eric Yuan, the founder, and CEO of the company published an open letter last night. The letter is in concern to the Zoom’s CFO Kelly Steckelberg’s conduct. He reveals in the letter that an anonymous source informed Zoom about Steckelberg’s ‘undisclosed, consensual relationship’ with a previous employer, during her tenure.

Most recently Steckelberg was the CEO of Zoosk, an online dating site. Before that, she was at Cisco as a senior director in its consumer finance. The letter, however, didn’t specify where the relationship had taken place and also didn’t reveal with whom or the timeline.

It would have been a major blown for Zoom to lose a CFO before an IPO. Chief financial officer or CFOs most times become the main face of IPO as they handle all the grueling tasks related to designing an IPO prospectus, directing the roadshow and many more. This is not it; a CFO also has to maintain daily financial operations.

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Michael Jamson

Michael Jamson is an established technical expert with 11+ years of background in managing the overall designing & development of Machine Learning, Big Data, and AI-powered ventures. He is also an adrenaline junkie, so to refresh himself he loves to indulge in adventure sports such as bungee jumping, paragliding, parachuting, and much more.

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