Zoom’s earnings to test hot tech valuations
Hello and welcome back to our regular morning view of private companies, public markets, and the gray areas in between.
This week, two highly valued SaaS companies will share their Q1 earnings reports: CrowdStrike and Zoom. Both are IPOs in 2019, but these relatively young public companies have seen a strong upswing in public markets this year.
Zoom started in 2020 around $ 69 a share; It’s worth $ 179.48 today before trading today. CrowdStrike started the year at just over $ 49 per share. Today it’s worth $ 87.81 per share. The business-oriented but consumer-friendly video chat service Zoom and the cyber security-oriented CrowdStrike are perfect examples of the upturn SaaS companies have experienced this year.
Since both companies report profits at the same time, we receive information about the work-from-home trend and the impact on services that enable remote work. CrowdStrikes The earnings will inform us of the performance of the cybersecurity area. Do companies fire more than expected to protect their networks and employees when so many are out of the office?
If the zoom and CrowdStrike report results that disappoint investors. They could do more than just dump their own stocks. Missing earnings reports from either could affect SaaS valuations more broadly and potentially affect the private valuations of companies in the new capital market. Why?
Awareness and timing.