Category: Eric Yuan

June 6, 2019 Off

Zoom outperforms in first-ever earnings report

By Jill T Frey

2019 is a great year for Zoom (Nasdaq: ZM). The company outperformed analyst expectations with the release of its first earnings report on Thursday.

The profitable video communications business, which went public this April in one of the year’s most successful initial public offerings, posted revenues of $122 million for the three months ended April 30, 2019, representing a year-over-year increase of 109%.

The Zoom stock is rising in after-hours trading following the news. Zoom closed up 2% Thursday at just over $79 per share. The stock has been trading at more than double its initial offering price in the two months following its IPO.

“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year,” Zoom founder and chief executive officer Eric Yuan said in a statement. “Delivering happiness to our customers is our … Read the rest

June 5, 2019 Off

Social Capital reincarnated

By Jill T Frey

Nine months ago, the once high-flying venture capital fund Social Capital made the bold decision to stop accepting outside capital and operate as a family office, in essence.

The co-founder of the outfit, brazen billionaire and early Facebook executive Chamath Palihapitiya, pledged to upend his investment strategy and make fewer but much larger investments as a means to improve his returns. Naturally, a near-complete exodus of Social Capital’s venture capitalists followed.

Today, the firm’s three founders, Palihapitiya, Mamoon Hamid and Ted Maidenberg, have gone their separate ways. Palihapitiya is rewriting the Social Capital playbook, Hamid is busy reinvigorating Kleiner Perkins and Maidenberg is building on top of the data-driven strategy and proprietary software dubbed “Magic 8-Ball” he built at Social Capital, with a new firm called Tribe Capital.

Quietly, Tribe Capital’s co-founders, Maidenberg and former Social Capital partners Arjun Sethi and Jonathan Hsu, have deployed millions of dollars in Read the rest

May 18, 2019 Off

Immigrant founders, smartphone growth, SEO tactics, SoftBank’s financials, and AR tech

By Jill T Frey

How an immigration crackdown is hurting UK startups

Our European correspondent Natasha Lomas spent the past few weeks investigating what’s been happening to immigrant founders and tech talent in the UK, who have been receiving more scrutiny from the Home Office in recent months. Natasha zooms in on Metail, a virtual fitting room startup, and its tribulations with the immigration authorities and the damage those action are having on the broader ecosystem:

The January 31 decision letter, which TechCrunch has reviewed, shows how the Home Office is fast-tracking anti-immigrant outcomes. In a short paragraph, the Home Office says it considered and dismissed an alternative outcome — of downgrading, not revoking, the license and issuing an “action plan” to rectify issues identified during the audit. Instead, it said an immediate end to the license was appropriate due to the “seriousness” of the non-compliance with “sponsor duties”.

The decision focused

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May 18, 2019 Off

Startups Weekly: There’s an alternative to raising VC and it’s called revenue-based financing

By Jill T Frey

Revenue-based financing is on the rise, at least according to Lighter Capital, a firm that doles out entrepreneur-friendly debt capital.

What exactly is RBF you ask? It’s a relatively new form of funding for tech companies that are posting monthly recurring revenue. Here’s how Lighter Capital, which completed 500 RBF deals in 2018, explains it: “It’s an alternative funding model that mixes some aspects of debt and equity. Most RBF is technically structured as a loan. However, RBF investors’ returns are tied directly to the startup’s performance, which is more like equity.”

Source: Lighter Capital

What’s the appeal? As I said, RBFs are essentially dressed up debt rounds. Founders who opt for RBFs as opposed to venture capital deals hold on to all their equity and they don’t get stuck on the VC hamster wheel, the process in which you are forced to continually accept VC while losing more … Read the rest

May 17, 2019 Off

Under the hood on Zoom’s IPO, with founder and CEO Eric Yuan

By Jill T Frey

Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Kate Clark sat down with Eric Yuan, the founder and CEO of video communications startup Zoom, to go behind the curtain on the company’s recent IPO process and its path to the public markets.

Since hitting the trading desks just a few weeks ago, Zoom stock is up over 30%. But the Zoom’s path to becoming a Silicon Valley and Wall Street darling was anything but easy. Eric tells Kate how the company’s early focus on profitability, which is now helping drive the stock’s strong performance out of the gate, actually made it difficult to get VC money early on, and the company’s consistent focus on user experience led to organic growth across different customer bases.

Eric: I experienced the year 2000 dot com crash

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May 13, 2019 Off

Looking back at Zoom’s IPO with CEO Eric Yuan

By Jill T Frey

Since the launch of its IPO in mid-April, Zoom stock has skyrocketed, up nearly 30% as of Monday’s open. However, as the company’s valuation continues to tick up, analysts and industry pundits are now diving deeper to try to unravel what the company’s future growth might look like.

TechCrunch’s venture capital ax Kate Clark has been following the story with a close eye and will be sitting down for an exclusive conversation with Zoom CEO Eric Yuan on Wednesday at 10:00 am PT. Eric, Kate and Extra Crunch members will be taking a look back at the company’s listing process and Zoom’s road to IPO.

Tune in to join the conversation and for the opportunity to ask Eric and Kate any and all things Zoom.

To listen to this and all future conference calls, become a member of Extra Crunch. Learn more and try it for free.

Source Read the rest