Zendesk
Market Cap
US$10.0b
Last Updated
2020/06/02 12:27 UTC
Data Sources
Company Financials +
Executive Summary
Zendesk, Inc., a software development company, provides software as a service solutions for organizations.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate balance sheet with concerning outlook.
Similar Companies
Share Price & News
How has Zendesk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ZEN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.8%
ZEN
3.5%
US Software
1.7%
US Market
1 Year Return
7.3%
ZEN
34.7%
US Software
8.5%
US Market
Return vs Industry: ZEN underperformed the US Software industry which returned 35.7% over the past year.
Return vs Market: ZEN underperformed the US Market which returned 9.3% over the past year.
Shareholder returns
| ZEN | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.8% | 3.5% | 1.7% |
| 30 Day | 20.7% | 10.9% | 9.5% |
| 90 Day | 19.6% | 12.8% | 0.1% |
| 1 Year | 7.3%7.3% | 35.7%34.7% | 11.0%8.5% |
| 3 Year | 220.0%220.0% | 128.0%120.2% | 32.2%23.5% |
| 5 Year | 276.6%276.6% | 209.9%191.1% | 58.6%40.8% |
Price Volatility Vs. Market
How volatile is Zendesk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Zendesk, Inc. (NYSE:ZEN): Does The Earnings Decline Make It An Underperformer?1 month ago | Simply Wall St
Is Zendesk, Inc. (NYSE:ZEN) Excessively Paying Its CEO?2 months ago | Simply Wall St
Is It Too Late To Consider Buying Zendesk, Inc. (NYSE:ZEN)?Valuation
Is Zendesk undervalued compared to its fair value and its price relative to the market?
22.18x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ZEN ($87.56) is trading above our estimate of fair value ($66.95)
Significantly Below Fair Value: ZEN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ZEN is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: ZEN is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ZEN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ZEN is overvalued based on its PB Ratio (22.2x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Zendesk forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
30.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZEN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ZEN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ZEN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ZEN's revenue (19.5% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: ZEN's revenue (19.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZEN's Return on Equity is forecast to be low in 3 years time (19.5%).
Next Steps
Past Performance
How has Zendesk performed over the past 5 years?
-16.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZEN is currently unprofitable.
Growing Profit Margin: ZEN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ZEN is unprofitable, and losses have increased over the past 5 years at a rate of -16.7% per year.
Accelerating Growth: Unable to compare ZEN's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ZEN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (9.6%).
Return on Equity
High ROE: ZEN has a negative Return on Equity (-37.27%), as it is currently unprofitable.
Next Steps
Financial Health
How is Zendesk's financial position?
Financial Position Analysis
Short Term Liabilities: ZEN's short term assets ($653.1M) exceed its short term liabilities ($453.5M).
Long Term Liabilities: ZEN's short term assets ($653.1M) exceed its long term liabilities ($585.3M).
Debt to Equity History and Analysis
Debt Level: ZEN's debt to equity ratio (108.9%) is considered high.
Reducing Debt: ZEN's debt to equity ratio has increased from 1.6% to 108.9% over the past 5 years.
Balance Sheet
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.
Stable Cash Runway: Whilst unprofitable ZEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ZEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.1% per year.
Next Steps
Dividend
What is Zendesk's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ZEN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZEN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ZEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Mikkel Svane (48yo)
12.83yrs
Tenure
US$4,409,144
Compensation
Mr. Mikkel Asger Svane has been Director at Stitch Fix, Inc. Since October 16, 2018. Mr. Svane Founded Zendesk, Inc. in 2007 and has been its Chief Executive Officer since August 2007. Mr. Svane served as ...
CEO Compensation Analysis
Compensation vs Market: Mikkel's total compensation ($USD4.41M) is below average for companies of similar size in the US market ($USD11.64M).
Compensation vs Earnings: Mikkel's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 12.83yrs | US$4.41m | 0.90% $90.1m | |
| Chief Financial Officer | 4.08yrs | US$3.38m | 0.016% $1.6m | |
| Chief Operating Officer | 2.83yrs | US$3.41m | 0.032% $3.2m | |
| President of Sales | 2.42yrs | US$2.83m | 0.019% $1.9m | |
| President of Products | 9.92yrs | US$3.82m | 0.074% $7.4m | |
| Founder & Chief Product Officer | 12.83yrs | no data | no data | |
| Co-Founder | no data | no data | no data | |
| Chief Accounting Officer | 0.92yr | no data | 0.00090% $90.0k | |
| Chief Information Officer | 1.33yrs | no data | no data | |
| VP of Strategy & Head of Investor Relations | no data | no data | no data |
3.5yrs
Average Tenure
50yo
Average Age
Experienced Management: ZEN's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 12.83yrs | US$4.41m | 0.90% $90.1m | |
| Lead Independent Director | 1.42yrs | US$257.61k | 0.010% $1.0m | |
| Independent Director | 6.42yrs | US$251.35k | 0.10% $10.1m | |
| Director | 1.42yrs | US$364.76k | 0.0024% $242.0k | |
| Independent Director | 2.58yrs | US$242.73k | 0.0076% $764.1k | |
| Independent Director | 2.75yrs | US$240.12k | 0.0065% $651.1k | |
| Independent Director | 1.17yrs | US$277.54k | 0.0011% $111.0k |
2.6yrs
Average Tenure
55yo
Average Age
Experienced Board: ZEN's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ZEN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.
Top Shareholders
Company Information
Zendesk, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Zendesk, Inc.
- Ticker: ZEN
- Exchange: NYSE
- Founded: 2007
- Industry: Application Software
- Sector: Software
- Market Cap: US$10.002b
- Shares outstanding: 114.23m
- Website: https://www.zendesk.com
Number of Employees
Location
- Zendesk, Inc.
- 1019 Market Street
- San Francisco
- California
- 94103
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ZEN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 2014 |
| 0M3F | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 2014 |
| ZEN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 2014 |
Biography
Zendesk, Inc., a software development company, provides software as a service solutions 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 that facilitates personal and productive phone support conversations between organizations and their customers; 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; and Zendesk Explore, which provides analytics for organizations to measure and enhance the customer experience. In addition, it provides Zendesk Sunshine, a customer relationship management platform; Sunshine Conversations, a messaging platform solution; 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/02 12:27 |
| End of Day Share Price | 2020/06/01 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.