Zendesk's first earnings report as a public company satisfies estimates

Summary:Along with a strong outlook for Q3, Zendesk announced a few internal promotions.

Zendesk handed in its first quarterly earnings report as a public company on Tuesday.

The customer service software provider reported a net loss of $21.7 million, or 48 cents per share (statement).

On a non-GAAP basis, the loss was 16 cents per share on a revenue of $29.5 million, up 80 percent year-over-year.

Wall Street was preparing for a loss at 18 cents per share on a revenue of $25.93 million.

The growing accounts list totaled roughly 45,740 at the end of the quarter, an increase of 40 percent year-over-year.

Zendesk announced its initial public offering on the New York Stock Exchange in May, priced at $9.00 per share. The software company also moved into a brand new, 73,000 square-foot office space in San Francisco recently.

Farther down in the Q2 report, Zendesk announced the promotion of two senior managers: Anne Raimondi to senior vice president of operations and Matt Price as senior vice president of global marketing.

Aside from the promotions, CEO Mikkel Svane reflected optimistically on the second quarter of 2014 in prepared remarks:

We steadily increased our revenue and our number of customer accounts, and showed improvement in our operating metrics. We attracted more enterprise customers, while also strengthening our core business with small- and medium-sized organizations.

For the current quarter, Wall Street expects Zendesk to end up a slightly smaller loss at 14 cents per share on a revenue of $28.20 million.

Zendesk followed up with a stronger Q3 revenue guidance range of $30 million to $32 million. For the full year, Zendesk projects revenue to fall between $118 million and $122 million.

Topics: Enterprise Software, Cloud, Data Management, Developer


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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