Exhibit 99.1
ZENDESK ANNOUNCES THIRD QUARTER 2017 RESULTS
 
Highlights
 
Third quarter revenue increased 40% year-over-year to $112.8 million
Third quarter GAAP operating loss of $28.4 million and non-GAAP operating loss of $3.3 million
Zendesk reaches 2,000 employees

SAN FRANCISCO – November 1, 2017 – Zendesk, Inc. (NYSE: ZEN) today reported financial results for the fiscal quarter ended September 30, 2017, and released a Shareholder Letter on its Investor Relations website at https://investor.zendesk.com.

Results for the Third Quarter 2017
 
Revenue was $112.8 million for the quarter ended September 30, 2017, an increase of 40% over the prior year period. GAAP net loss for the quarter ended September 30, 2017 was $27.7 million, and GAAP net loss per share was $0.28. Non-GAAP net loss was $2.5 million, and non-GAAP net loss per share was $0.02. Non-GAAP net loss excludes approximately $23.7 million in share-based compensation and related expenses (including $0.7 million of employer tax related to employee stock transactions and $0.5 million of amortization of share-based compensation capitalized in internal-use software), $1.0 million of amortization of purchased intangibles, and $0.5 million in acquisition-related expenses. GAAP and non-GAAP net loss per share for the quarter ended September 30, 2017 were based on 100.7 million weighted average shares outstanding.

Zendesk Reaches 2,000 Employees

The company reached a milestone in October, surpassing 2,000 employees around the globe. “As we build for the future, embracing diverse perspectives here at home and around the world will be critical to our relevance as a global company,” said Mikkel Svane, Zendesk CEO, chairman and founder. “It is the only way we will be able to do right by our employees and customers, continue to build innovative products, and enable a culture and workforce that supports and empowers.”

Outlook

As of November 1, 2017, Zendesk provided guidance for the quarter ending December 31, 2017 and updated its guidance for the year ending December 31, 2017.
 
For the quarter ending December 31, 2017, Zendesk expects to report:

Revenue in the range of $118.0 - 120.0 million
GAAP operating loss of $29.0 - 31.0 million, which includes share-based compensation and related expenses of approximately $24.7 million, amortization of purchased intangibles of approximately $0.7 million, and acquisition-related expenses of approximately $0.6 million
Non-GAAP operating loss of $3.0 - 5.0 million, which excludes share-based compensation and related expenses of approximately $24.7 million, amortization of purchased intangibles of approximately $0.7 million, and acquisition-related expenses of approximately $0.6 million
Approximately 102.1 million weighted average shares outstanding

For the full year 2017, Zendesk expects to report:

Revenue in the range of $425.0 - 427.0 million
GAAP operating loss of $116.0 - 118.0 million, which includes share-based compensation and related expenses of approximately $92.3 million, amortization of purchased intangibles of approximately $3.7 million, and acquisition-related expenses of approximately $2.0 million
Non-GAAP operating loss of $18.0 - 20.0 million, which excludes share-based compensation and related expenses of approximately $92.3 million, amortization of purchased intangibles of approximately, $3.7 million and acquisition-related expenses of approximately $2.0 million
Approximately 100.0 million weighted average shares outstanding

Zendesk’s estimates of share-based compensation and related expenses, amortization of purchased intangibles, and acquisition-related expenses in future periods assume, among other things, the occurrence of no additional acquisitions, investments or restructurings, and no further revisions to share-based compensation and related expenses.



The following information was filed by Zendesk, Inc. (ZEN) on Wednesday, November 1, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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