Exhibit 99.1
ZENDESK ANNOUNCES FOURTH QUARTER AND FULL FISCAL YEAR 2017 RESULTS
 
Highlights:
Fourth quarter revenue increased 39% year-over-year to $123.4 million
Fourth quarter GAAP operating loss of $28.5 million and non-GAAP operating loss of $2.4 million
Full year 2017 revenue increased 38% year-over-year to $430.5 million
Full year 2017 GAAP operating loss of $114.6 million and non-GAAP operating loss of $17.1 million
SAN FRANCISCO – February 6, 2018 – Zendesk, Inc. (NYSE: ZEN) today reported financial results for the fiscal quarter and full fiscal year ended December 31, 2017, and released a Shareholder Letter on its investor relations website at https://investor.zendesk.com. Additionally, Zendesk has provided its historical financial results under the new revenue recognition standard ASC 606 on its investor relations website.
 
Results for the Fourth Quarter 2017
Revenue was $123.4 million for the quarter ended December 31, 2017, an increase of 39% over the prior year period. GAAP net loss for the quarter ended December 31, 2017 was $26.6 million, and GAAP net loss per share was $0.26. Non-GAAP net loss was $0.5 million, and non-GAAP net loss per share was $0.01. Non-GAAP net loss excludes approximately $24.7 million in share-based compensation and related expenses (including $2.0 million of employer tax related to employee stock transactions and $0.4 million of amortization of share-based compensation capitalized in internal-use software), $0.7 million of amortization of purchased intangibles, and $0.7 million of acquisition-related expenses. GAAP and non-GAAP net loss per share for the quarter ended December 31, 2017 were based on 102.0 million weighted average shares outstanding.

Results for the Full Fiscal Year 2017
Revenue was $430.5 million for the year ended December 31, 2017, an increase of 38% over the prior year period. GAAP net loss for the quarter ended December 31, 2017 was $110.6 million, and GAAP net loss per share was $1.11. Non-GAAP net loss was $13.1 million, and non-GAAP net loss per share was $0.13. Non-GAAP net loss excludes approximately $91.6 million in share-based compensation and related expenses (including $4.8 million of employer tax related to employee stock transactions and $1.8 million of amortization of share-based compensation capitalized in internal-use software), $3.7 million of amortization of purchased intangibles, and $2.2 million of acquisition-related expenses. GAAP and non-GAAP net loss per share for the year ended December 31, 2017 were based on 99.9 million weighted average shares outstanding.

Outlook
As of February 6, 2018, Zendesk provided guidance for the quarter ending March 31, 2018 and for the year ending December 31, 2018. Guidance for 2018 is based on the new revenue recognition standard ASC 606.
 
For the quarter ending March 31, 2018, Zendesk expects to report:
Revenue in the range of $125.0 - 127.0 million
GAAP operating loss of $33.0 - 35.0 million, which includes share-based compensation and related expenses of approximately $28.7 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 $28.7 million, amortization of purchased intangibles of approximately $0.7 million, and acquisition-related expenses of approximately $0.6 million
Approximately 103.8 million weighted average shares outstanding

For the full year 2018, Zendesk expects to report:
Revenue in the range of $555.0 - 565.0 million
GAAP operating loss of $113.0 - 118.0 million, which includes share-based compensation and related expenses of approximately $112.8 million, amortization of purchased intangibles of approximately $2.7 million, and acquisition-related expenses of approximately $2.5 million
Non-GAAP operating loss of $0.0 - 5.0 million, which excludes share-based compensation and related expenses of approximately $112.8 million, amortization of purchased intangibles of approximately $2.7 million, and acquisition-related expenses of approximately $2.5 million
Approximately 106.2 million weighted average shares outstanding
Free cash flow of approximately $25.0 - 30.0 million




The following information was filed by Zendesk, Inc. (ZEN) on Tuesday, February 6, 2018 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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