Zoominfo, a Vancouver, Washington-based SaaS business database provider, has raised $935 million in its IPO. The offering is the first significant tech IPO since the COVID-19 pandemic shut down much of the U.S. economy.
The company priced its IPO at $21, a little higher than the previously expected range of $19 to $20. The stock closed up 62% at $34, bringing the total valuation of the company to about $13.4 billion. This makes it the second-most valuable public company in Portland, with only Nike coming out ahead. It’s also the first Portland-area company to go public since nLight in 2018.
“It’s an exciting day for the region. It’s an exciting day to be a software company in the Portland metro area," said CEO Henry Schuck, 36, who started the company in 2007 as DiscoverOrg. The IPO instantly makes Shuck a billionaire, but he’s also energized by the prospects it will bring to the Portland area. “It tells everyone outside this region you can build a great and thriving technology company here," Shuck said.
ZoomInfo’s platform helps corporate sales and marketing teams engage in effective customer outreach, consolidating software tools from Salesforce, Oracle, Microsoft, and more. Today, the firm has more than 15,000 customers across myriad industries.
The company has seen a boom in its subscription-based service during the pandemic. ZoomInfo generated $102 million in sales in the first quarter of 2020, with an available cash flow of $64 million, and has a 50% growth rate, according to its filings. Although similarly named, the company should not be confused with Zoom, the leader in enterprise video communications that has also seen a recent boost in business during the coronavirus outbreak. Earlier this year, the Securities and Exchange Commission halted trading of a Chinese company named Zoom Technologies because investors were confusing it with Zoom Video. The Chinese company had been trading under the ticker of ZOOM, which has since been changed to ZTNO. Currently, there is no company with the ticker symbol "ZOOM."
“ZoomInfo has become an essential tool for Zoom Video’s sales representatives to penetrate new and international markets, and today 90% of the Zoom Video sales team uses the ZoomInfo platform,” the filing said.
The IPO celebration did hit a snag, with Shuck’s dream of ringing the opening bell receiving a 2020-twist -- he was able to do so, but only remotely from Nasdaq’s offices. “There was always a dream of standing on the floor and pressing the button,” Shuck says. “But I’m OK with hitting that button virtually.”