Social media platform Pinterest and videoconferencing firm Zoom are each set to price shares ahead of their respective initial public offerings (IPOs) on Thursday, marking the latest in a series of burgeoning tech companies to go public.
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Both technology unicorns are expected to price their shares by Wednesday night. Zoom will trade on Nasdaq under the ticker “ZM,” while Pinterest will list on the New York Stock Exchange under the ticker “PINS.”
Pinterest and Zoom will begin public trading just weeks after another high-profile IPO. Ride-sharing company Lyft saw its shares soar above its initial price in its first days of trading, only to drop more than 20% below its starting price as investors raised concerns about whether the company can be profitable. Other tech leaders, including Uber, are set to go public later this year.
FOX Business breaks down key details regarding the Pinterest and Zoom IPOs below.
Zoom raised its IPO price range
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The videoconferencing company raised its proposed price range to $33 to $35 this week, up from a previous range of $28 to $32. At the high end of its proposed range, Zoom would have a valuation of roughly $9 billion.
Zoom is profitable
A rarity among tech unicorns, Zoom has already turned a profit ahead of its IPO. The company reported revenue of $330.5 million in its most recent fiscal year, up 118% year-over-year.
Pinterest’s massive user base
The platform, which allows consumers to “pin” interests in categories such as dinner recipes and fashion, had more than 250 monthly active users as of December 2018 and more than $750 million in revenue in fiscal 2018. However, the company still operated at a net loss of $63 million over the same period.
Pinterest’s valuation
Pinterest set its price range at $15 to $17 per share earlier this month, which would place the companies’ valuation at roughly $10.5 billion. That is well below the $12 billion valuation Pinterest received in 2017, the Wall Street Journal reported.
However, Pinterest is expected to price its shares above its proposed range, sources familiar with the matter said.
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More tech IPOs on the way
Uber is set to go public later this year at a valuation of roughly $100 billion, though the company has yet to set an exact date. Workplace-messaging platform Slack is also expected to go public later this year via direct listing.
