Zoom Video Communications (ZM) lived up to its name Thursday with an opening price of $65 a share, 81% higher than its initial offering price.
Shares surged nearly 80% to $64.75.
The San Jose-based company provides videoconferencing tools. Shares were recently changing hands at $63 a share.
Zoom Video is one of two multi-billion dollar tech IPOs to debut on Thursday. Pinterest (PINS) debuted on the New York Stock Exchange, opening at $23.75, 25% above its initial public offering price of $19 a share. Both companies priced their offerings fairly conservatively at the start in the wake of the big decline experienced by ridesharing giant Lyft (LYFT) following its IPO.
The company posted revenue of $60.8 million, $151.5 million and $330.5 million for the fiscal years ended Jan. 31, 2017, 2018 and 2019, respectively, according to its filing with the SEC. That represented annual revenue growth of 149% and 118% in fiscal 2018 and fiscal 2019, respectively.
Zoom Video said in its filing that "much of the primary capital that we have raised in recent years remains on our balance sheet, demonstrating the cash flow efficiency of our business."
Salesforce Ventures LLC, the venture capital arm of Salesforce.com CRM , agreed to buy $100 million of stock in a private placement at a price per share equal to the IPO, the filing said. The deal is contingent upon, and is scheduled to close immediately subsequent to, the closing of the offering, the filing said.