Zoom Video (ZM) - Get Zoom Video Communications Inc. Report founder and CEO Eric Yuan transferred approximately 40% of his ownership stake in the company to unspecified recipients, according to a securities filing made on Friday.
The stake was worth roughly $6 billion and came from two trusts for which Yuan and his wife are co-trustees, the Wall Street Journal reported.
A Zoom spokeswoman told the Journal that “the distributions were made in accordance with the terms of Eric Yuan and his wife’s trusts, and are consistent with the Yuans’s typical estate planning practices.” The spokesperson did not say who now owned the the shares.
The two trusts gave approximately 18 million shares to the recipients on March 3, according to the filing. The stock was held in the trusts as Class B shares, which convey 10 votes apiece and that could be converted into Class A shares, which carry just one vote.
Zoom shares are up more than 171% over the past year as the COVID-19 pandemic and resulting lockdown has significantly increased demand for the company’s videoconferencing software and tools.
Last week, Zoom reported fiscal fourth quarter results that were significantly ahead of analyst expectations, with adjusted earnings of $1.22 per share on revenue of $882.5 million, a 369% year-over-year increase.
Analysts were expecting Zoom to report earnings of 79 cents per share on revenue of $811.7 million, according to FactSet.
“In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic," Yuan said in a statement. "As we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses,"
On Monday, shares of Zoom fell 8% to $310.00. They fell another 1.2% in after-hours trading.