Zendesk
Zendesk, Inc., a software development company, provides SaaS products for organizations. The last earnings update was 35 days ago. More info.
Add to Portfolio Compare Print
- Zendesk has significant price volatility in the past 3 months.
ZEN Share Price and Events
7 Day Returns
1 Year Returns
ZEN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Zendesk (ZEN) | 1.3% | 7.6% | 63.9% | 74.6% | 330.4% | - |
| US Software | 2.4% | 5.5% | 19.8% | 25.6% | 110.4% | 139.4% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- ZEN outperformed the Software industry which returned 25.6% over the past year.
- ZEN outperformed the Market in United States of America which returned 3% over the past year.
Value
Is Zendesk undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Zendesk
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Zendesk.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 22 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (5.03%)) |
1.125 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.12 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.125 * 5.96%) |
9.43% |
Discounted Cash Flow Calculation for NYSE:ZEN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Zendesk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.43%) |
|
|---|---|---|---|
| 2019 | 60.85 | Analyst x12 | 55.60 |
| 2020 | 113.69 | Analyst x12 | 94.93 |
| 2021 | 176.07 | Analyst x3 | 134.35 |
| 2022 | 260.10 | Analyst x2 | 181.36 |
| 2023 | 384.15 | Analyst x2 | 244.77 |
| 2024 | 490.48 | Est @ 27.68% | 285.58 |
| 2025 | 589.54 | Est @ 20.2% | 313.67 |
| 2026 | 677.71 | Est @ 14.96% | 329.50 |
| 2027 | 754.21 | Est @ 11.29% | 335.08 |
| 2028 | 819.98 | Est @ 8.72% | 332.90 |
| Present value of next 10 years cash flows | $2,307.75 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $819.98 × (1 + 2.73%) ÷ (9.43% – 2.73%) |
$12,566.85 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $12,566.85 ÷ (1 + 9.43%)10 |
$5,102.01 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,307.75 + $5,102.01 |
$7,409.76 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $7,409.76 / 108.36 |
$68.38 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $68.38 |
| Current discount | Discount to share price of
$84.02
= -1 x ($84.02 - $68.38) / $68.38 |
-22.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Zendesk is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Zendesk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Zendesk's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-1.24 |
| NYSE:ZEN Share Price ** | NYSE (2019-03-20) in USD | $84.02 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 53.03x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Zendesk.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ZEN Share Price ÷ EPS (both in USD) = 84.02 ÷ -1.24 |
-67.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Zendesk is loss making, we can't compare its value to the US Software industry average.
- Zendesk is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Zendesk's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -67.66x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts |
17.8%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.6x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Zendesk, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Zendesk's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $3.86 |
| NYSE:ZEN Share Price * | NYSE (2019-03-20) in USD | $84.02 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.84x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ZEN Share Price ÷ Book Value per Share (both in USD) = 84.02 ÷ 3.86 |
21.76x |
* Primary Listing of Zendesk.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Zendesk is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Zendesk's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Zendesk has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Zendesk expected to perform in the next 1 to 3 years based on estimates from 22 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Zendesk's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Zendesk's earnings growth is expected to exceed the United States of America market average.
- Zendesk's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ZEN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts | 17.8% |
| NYSE:ZEN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts | 21% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1,972 | 419 | 13 | 3 |
| 2022-12-31 | 1,634 | 285 | -77 | 3 |
| 2021-12-31 | 1,318 | 236 | -87 | 7 |
| 2020-12-31 | 1,040 | 178 | -124 | 20 |
| 2019-12-31 | 803 | 111 | -148 | 22 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 599 | 79 | -131 |
| 2018-09-30 | 549 | 73 | -131 |
| 2018-06-30 | 506 | 64 | -123 |
| 2018-03-31 | 466 | 51 | -115 |
| 2017-12-31 | 430 | 42 | -102 |
| 2017-09-30 | 397 | 45 | -102 |
| 2017-06-30 | 365 | 38 | -102 |
| 2017-03-31 | 337 | 27 | -102 |
| 2016-12-31 | 313 | 25 | -98 |
| 2016-09-30 | 286 | 14 | -104 |
| 2016-06-30 | 261 | 15 | -97 |
| 2016-03-31 | 235 | 15 | -92 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
All data from Zendesk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 0.10 | 0.10 | 0.10 | 1.00 |
| 2022-12-31 | -0.62 | -0.62 | -0.62 | 1.00 |
| 2021-12-31 | -1.15 | -1.05 | -1.25 | 2.00 |
| 2020-12-31 | -1.17 | -0.82 | -1.48 | 12.00 |
| 2019-12-31 | -1.35 | -1.07 | -1.52 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -1.24 |
| 2018-09-30 | -1.26 |
| 2018-06-30 | -1.20 |
| 2018-03-31 | -1.13 |
| 2017-12-31 | -1.02 |
| 2017-09-30 | -1.03 |
| 2017-06-30 | -1.05 |
| 2017-03-31 | -1.07 |
| 2016-12-31 | -1.05 |
| 2016-09-30 | -1.13 |
| 2016-06-30 | -1.08 |
| 2016-03-31 | -1.04 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Zendesk's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Zendesk has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Zendesk performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Zendesk does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
- Unable to compare Zendesk's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Zendesk's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
All data from Zendesk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 598.75 | -131.08 | 393.56 | 158.06 |
| 2018-09-30 | 548.74 | -131.31 | 372.84 | 143.90 |
| 2018-06-30 | 506.18 | -122.98 | 348.60 | 132.85 |
| 2018-03-31 | 466.40 | -114.88 | 325.10 | 124.12 |
| 2017-12-31 | 430.17 | -102.14 | 293.60 | 115.29 |
| 2017-09-30 | 396.87 | -101.71 | 274.36 | 108.90 |
| 2017-06-30 | 365.32 | -101.72 | 258.69 | 102.49 |
| 2017-03-31 | 337.43 | -101.71 | 243.91 | 95.93 |
| 2016-12-31 | 312.84 | -97.62 | 226.02 | 91.07 |
| 2016-09-30 | 286.02 | -103.73 | 214.82 | 85.78 |
| 2016-06-30 | 260.97 | -96.83 | 196.11 | 78.86 |
| 2016-03-31 | 234.99 | -92.06 | 179.46 | 70.95 |
| 2015-12-31 | 208.77 | -84.05 | 161.95 | 62.62 |
| 2015-09-30 | 184.66 | -77.07 | 144.64 | 54.69 |
| 2015-06-30 | 162.91 | -76.06 | 134.33 | 48.21 |
| 2015-03-31 | 144.19 | -76.33 | 123.60 | 44.48 |
| 2014-12-31 | 127.05 | -67.43 | 110.74 | 36.40 |
| 2014-09-30 | 111.01 | -56.06 | 95.91 | 29.78 |
| 2014-06-30 | 96.34 | -42.91 | 78.48 | 24.09 |
| 2014-03-31 | 83.23 | -27.52 | 63.78 | 17.12 |
| 2013-12-31 | 72.05 | -22.62 | 54.06 | 15.29 |
| 2012-12-31 | 38.23 | -32.74 | 34.31 | 14.82 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Zendesk has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- It is difficult to establish if Zendesk has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if Zendesk improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Zendesk's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Zendesk has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Zendesk's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Zendesk's finances.
The net worth of a company is the difference between its assets and liabilities.
- Zendesk is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Zendesk's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Zendesk Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 416.92 | 458.18 | 426.73 |
| 2018-09-30 | 404.78 | 452.08 | 450.76 |
| 2018-06-30 | 404.87 | 446.06 | 684.26 |
| 2018-03-31 | 400.65 | 439.95 | 737.98 |
| 2017-12-31 | 354.18 | 0.00 | 246.95 |
| 2017-09-30 | 306.17 | 0.00 | 226.56 |
| 2017-06-30 | 307.97 | 0.00 | 240.26 |
| 2017-03-31 | 305.40 | 0.00 | 247.70 |
| 2016-12-31 | 299.43 | 0.00 | 224.87 |
| 2016-09-30 | 298.53 | 0.00 | 211.35 |
| 2016-06-30 | 292.72 | 0.00 | 224.17 |
| 2016-03-31 | 289.85 | 0.00 | 254.32 |
| 2015-12-31 | 293.29 | 0.00 | 245.64 |
| 2015-09-30 | 292.63 | 0.00 | 280.63 |
| 2015-06-30 | 296.83 | 0.00 | 286.34 |
| 2015-03-31 | 298.27 | 6.20 | 309.08 |
| 2014-12-31 | 113.71 | 6.96 | 122.47 |
| 2014-09-30 | 114.62 | 7.80 | 110.29 |
| 2014-06-30 | 121.74 | 7.90 | 129.48 |
| 2014-03-31 | 28.45 | 27.99 | 61.49 |
| 2013-12-31 | 25.09 | 24.12 | 63.61 |
| 2012-12-31 | 41.12 | 0.71 | 48.69 |
- Zendesk's level of debt (109.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (96.2% vs 109.9% today).
CASH RUNWAY ANALYSIS
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
- Whilst loss making Zendesk has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
- Whilst loss making Zendesk has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -113.6% per year.
Financial health checks
We assess Zendesk's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Zendesk has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Zendesk's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Zendesk
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Zendesk's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Zendesk's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 0.00 | 1.00 |
| 2020-12-31 | 0.00 | 2.00 |
| 2019-12-31 | 0.00 | 2.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Zendesk has not reported any payouts.
- Unable to verify if Zendesk's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Zendesk's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Zendesk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Zendesk has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $2,130,565 |
| AGE | 47 |
| TENURE AS CEO | 11.6 years |
CEO Bio
Mr. Mikkel Asger Svane has been Director at Stitch Fix, Inc. Since October 16, 2018. Mr. Svane Founded Zendesk, Inc. in 2007 and has been its Chief Executive Officer since August 2007. Mr. Svane served as the President of Zendesk, Inc. Mr. Svane founded Caput A/S in 1996, where he served as its Chief Executive Officer until 2002 building the business for social Web applications on the BEA WebLogic platform. His experience spans a variety of Nordic organizations, where he provided strategic counsel regarding mergers, service management, sales and communications strategy. He has been the Chairman of Zendesk, Inc. since January 2014. He has been a Director of Zendesk, Inc. since August 2007. Mr. Svane holds a BSc(Econ) in Market Economics from Denmark. Mr. Svane holds an A.P. in marketing management from Arhus Kobmandsskole.
CEO Compensation
- Mikkel's compensation has increased whilst company is loss making.
- Mikkel's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Zendesk management team in years:
- The tenure for the Zendesk management team is about average.
Management Team
Mikkel Svane
Founder
$2M
47
11.6 yrs
Elena Gomez
Chief Financial Officer
$1M
48
2.8 yrs
Tom Keiser
Chief Operating Officer
$2M
52
1.6 yrs
John Geschke
Chief Legal Officer & Senior VP of Administration
$1M
47
3.4 yrs
Adrian McDermott
President of Products
$1M
49
2.4 yrs
Alexander Aghassipour
Founder & Chief Product Officer
50
11.6 yrs
Morten Primdahl
Co-Founder
44
Colleen Berube
Chief Information Officer
0.1 yrs
Marc Cabi
VP of Strategy & Head of Investor Relations
Norman Gennaro
Senior Vice President of Worldwide Sales
1.2 yrs
Board of Directors Tenure
Average tenure and age of the Zendesk board of directors in years:
- The tenure for the Zendesk board of directors is about average.
Board of Directors
Betsey Nelson
Lead Independent Director
$250K
58
Mikkel Svane
Founder
$2M
47
5.2 yrs
L. Wilson
Director
$247K
54
5.2 yrs
Carl Bass
Director
$238K
60
3.1 yrs
Dana Stalder
Director
$238K
50
8.3 yrs
Caryn Marooney
Director
$241K
50
5.2 yrs
Hilarie Koplow-McAdams
Director
$174K
54
1.5 yrs
Mike Frandsen
Director
$120K
56
1.3 yrs
Tom Szkutak
Director
57
0.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 20. Feb 19 | Sell | Elizabeth Nelson | Individual | 19. Feb 19 | 19. Feb 19 | -5,000 | $78.11 | $-390,572 | ||
| 14. Sep 18 | Sell | Elizabeth Nelson | Individual | 12. Sep 18 | 12. Sep 18 | -10,000 | $70.42 | $-704,213 | ||
| 01. Jun 18 | Sell | Dana Stalder | Individual | 30. May 18 | 30. May 18 | -40,000 | $56.52 | $-2,260,660 | ||
| 01. Jun 18 | Sell | Elizabeth Nelson | Individual | 31. May 18 | 31. May 18 | -10,000 | $56.68 | $-566,832 | ||
Management checks
We assess Zendesk's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Zendesk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is Zendesk, Inc. (NYSE:ZEN) A Financially Sound Company?
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Zendesk, Inc. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … ZEN’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.
Simply Wall St - – Full articleAt US$79.32, Is Zendesk, Inc. (NYSE:ZEN) Worth Looking At Closely?
As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, what if the stock is still a bargain. … Let’s examine Zendesk’s valuation and outlook in more detail to determine if there’s still a bargain opportunity
Simply Wall St - – Full articleZendesk, Inc. (NYSE:ZEN): The Yield That Matters The Most
Today we will examine Zendesk’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Zendesk generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating … What remains after this expenditure, is known as its free cash flow, or FCF, for short.
Simply Wall St - – Full articleIs Zendesk Inc (NYSE:ZEN) Overpaying Its CEO?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Mikkel Svane's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that Mikkel Svane takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.
Simply Wall St - – Full articleDoes Zendesk Inc's (NYSE:ZEN) Past Performance Indicate A Weaker Future?
After looking at Zendesk Inc's (NYSE:ZEN) latest earnings update (31 March 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … ZEN is loss-making, with the most recent trailing twelve-month earnings of -US$114.88m (from 31 March 2018), which compared to last year has become
Simply Wall St - – Full articleIs There Now An Opportunity In Zendesk Inc (NYSE:ZEN)?
As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Zendesk’s outlook and valuation to see if the opportunity still exists? … What does the future of Zendesk look like?
Simply Wall St - – Full articleWant To Invest In Zendesk Inc (NYSE:ZEN)? Here's How It Performed Lately
After looking at Zendesk Inc's (NYSE:ZEN) latest earnings update (31 December 2017), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … NYSE:ZEN Income Statement Mar 14th 18 We can further assess Zendesk's loss by looking at what the industry has been experiencing over the past few years.
Simply Wall St - – Full articleCompany Info
Description
Zendesk, Inc., a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience. In addition, it provides Zendesk Sunshine, a customer relationship management platform; Zendesk Embeddables, which allow developers to embed support, chat, and guide experiences on the Web and within mobile applications; and Zendesk application platform interfaces and Apps. The company has operations in North America, Latin America, Europe, the Middle East, Africa, Australia, Asia, and South America. Zendesk, Inc. was founded in 2007 and is headquartered in San Francisco, California.
Details
| Name: | Zendesk, Inc. |
| ZEN | |
| Exchange: | NYSE |
| Founded: | 2007 |
| $9,104,312,677 | |
| 108,358,875 | |
| Website: | http://www.zendesk.com |
| Address: |
Zendesk, Inc. 1019 Market Street, San Francisco, California, 94103, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | ZEN | Common Stock | New York Stock Exchange | US | USD | 15. May 2014 | |
| LSE | 0M3F | Common Stock | London Stock Exchange | GB | USD | 15. May 2014 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/21 00:48 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/12 |
| Last earnings filing: | 2019/02/14 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
