Stock Monitor: Bridgeline Digital Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 29, 2018 / If you want access to our free earnings report on Zendesk, Inc. (NYSE: ZEN), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ZEN. Zendesk reported its first quarter fiscal 2018 operating and financial results on May 01, 2018. The customer-service software maker outperformed top- and bottom-line expectations. The Company also exceeded annual revenue run rate of $0.5 billion, making Zendesk the fastest-growing dedicated customer service and engagement platform. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Zendesk's revenue was $129.8 million for the quarter ended March 31, 2018, reflecting an increase of 38% over revenue of $93.9 million in Q1 2017. The Company's reported numbers exceeded analysts' estimates of $126.8 million.
During Q1 2018, Zendesk's GAAP operating margin improved 100 basis points on a y-o-y basis to negative 25.9% largely due to scale as revenue growth outpaced operating expenses growth. The Company's non-GAAP operating margin improved 140 bps versus the year ago comparable period to negative 2.3%
Zendesk's GAAP net loss was $29.3 million, or $0.28 per share, for Q1 2018 compared to GAAP net loss of $25.1 million, or $0.26 per share, in Q1 2017.
For Q1 2018, Zendesk's non-GAAP net income was $2.0 million, or $0.02 per share, compared to non-GAAP net loss of $3.3 million, or $0.03 per diluted share, for Q1 2017. During the reported quarter, the Company's non-GAAP net income excluded approximately $29.2 million in share-based compensation and related expenses $0.7 million of amortization of purchased intangibles, $0.7 million of acquisition-related expenses, and $0.7 million of amortization of debt discount and issuance costs. Zendesk's earnings beat Wall Street's estimates for a loss of $0.03 per share.
Zendesk achieved a major milestone during Q1 2018 by surpassing a $500 million annual revenue run rate. Over the four years since its IPO, the Company's annual revenue run rate has grown at a compounded annual growth rate of 50% from the $100 million reported in May 2014 to more than $500 million in Q1 2018.
During Q1 2018, Zendesk's paid customer account growth was healthy at 23% on a y-o-y basis, with the Company serving more than 125,000 paid customers worldwide. The Company's dollar-based net expansion rate, which Zendesk uses to quantify its annual expansion within existing customers, increased by one percentage point to 120% in the reported quarter compared to 119% at the end of Q4 2017. Zendesk's dollar-based net expansion rate was 115% at the end of Q1 2017. The Company's growth was strong across both enterprise customers and small- and mid-sized customers.
As of May 01, 2018, Zendesk provided guidance for the quarter ending June 30, 2018 and updated its guidance for the year ending December 31, 2018.
For the quarter ending June 30, 2018, Zendesk is forecasting revenue in the range of $136.0 million - 138.0 million. The Company is expecting GAAP operating loss in the range of $34.0 million - 32.0 million, and non-GAAP operating income(loss) in the range of $2.0 million - 0.0 million.
For the full year 2018, Zendesk is projecting revenue in the range of $565.0 million - 572.0 million. The Company is estimating GAAP operating loss in the range of $132.0 million - $127.0 million, and non-GAAP operating income in the band of $0.0 million - 5.0 million. Zendesk is projecting free cash flow in the range of $25.0 million - 30.0 million.
Stock Performance Snapshot
May 25, 2018 - At Friday's closing bell, Zendesk's stock marginally declined 0.11%, ending the trading session at $56.33.
Volume traded for the day: 311.26 thousand shares.
Stock performance in the last month – up 15.76%; previous three-month period – up 30.39%; past twelve-month period – up 119.18%; and year-to-date – up 66.46%
After last Friday's close, Zendesk's market cap was at $5.90 billion.
The stock is part of the Technology sector, categorized under the Application Software industry. This sector was flat at the end of the session.
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