Zoom CEO Eric Yuan Transfers $6 Billion Worth of Shares
Eric Yuan, the CEO and founder of Zoom, transferred approximately 40% of his ownership in the company, a stake valued at about $6 billion, The Wall Street Journal reports.
According to the WSJ, the transaction was recorded as two gifts of nearly nine million shares apiece to unspecified recipients and from two trusts for which Mr. Yuan and his wife are co-trustees, according to a securities filing made late on Friday.
“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,” a Zoom spokeswoman said in a statement to the WSJ.
Zoom reported its fourth-quarter and full-year earnings earlier this month, beating both revenue and earnings-per-share estimates, largely due to the pandemic’s remote work environment, which made the company a household name last year.
Zoom posted EPS of $1.22 and revenue of $882.5 million for the fourth quarter, according to an earnings statement, compared to estimates of $0.79 and $810.9 million respectively, according to Seeking Alpha.
The $882.5 million, represents a staggering 369% increase year-over-year, while full fiscal year revenue totaled $2.6 billion, up 326% year-over-year.
“The fourth quarter marked a strong finish to an unprecedented year for Zoom. 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 the earnings statement. “We are humbled by our role as a trusted partner and an engine for the modern work-from-anywhere environment. Our ability to rapidly respond and execute drove strong financial results throughout the year.”
Yuan added that the company believed that as it enters FY2022, it is well positioned for strong growth “with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognized brand; and a team ever focused on delivering happiness to our customers.”
Zoom also provided its financial guidance for its first quarter of fiscal year 2022 and its full fiscal year 2022.
For the first quarter fiscal year 2022, total revenue is expected to be between $900 million and $905 million and non-GAAP income from operations is expected to be between $295 million and $300 million, and EPS is expected to be between $0.95 and $0.97, according to the statement.
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