As a public company, it took Salesforce 14 years to reach a market value of $100 billion. Getting there requires three multi-million dollar acquisitions and four separate sources of income.
When Zoom broke the $100 billion mark last year, it has been on the market for just over 14 months. The company relied on a single product and only completed one small-scale acquisition.
Although still a kid on the Nasdaq exchange, due to its unexpectedly rapid rise, Zoom is now forced to assume adult responsibilities to investors. The video chat company’s historic growth during the Covid19 pandemic has caused its market value to jump from $ 9.2 billion at the time of its 2019 IPO to a peak of $ 159 billion in October, temporarily keeping pace with Cisco. Although revenue was up 191% in the most recent quarter.
Zoom has lost roughly a third of its value since then as investors prepare for the post-pandemic future and competition has intensified, especially from Microsoft Teams. . Competition intensifies.
Despite this, Zoom remains one of the 25 most valuable technology companies in North America and the only publicly-traded company in the past four years. Shopify and Snap went public in 2015 and 2017, respectively, and are the only two companies in the group to trade at higher sales multiples.
In other words, the stock market is providing Zoom with tools to become the top dealer. Zoom is taking advantage of this advantage and earlier this week announced the acquisition of Five9 for $ 14.7 billion, which sells cloud-based software to call centers.
“This allows them to use their own currency to buy influential things,” said Alfred Chuang, a partner at venture capital firm Race Capital, who co-founded BEA Systems and sold it for $ 8.5 billion in 2008. Sold to Oracle. “I can’t imagine this being the last.” According to data from FactSet, the Five9 transaction is one of the 10 largest business software transactions in US history, beating any acquisition from Amazon, Google, Oracle, Cisco, or Adobe e-trade.
About 23 times Five9’s expected revenue in 2022, it’s also the second-largest software transaction from price to sales, second only to Salesforce’s $ 27 billion acquisition of Slack, which closed earlier this year. month.
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