Zendesk
Market Cap
US$7.5b
Last Updated
2019/10/18 00:12 UTC
Data Sources
Company Financials +
Executive Summary
Zendesk, Inc., a software development company, provides SaaS products for organizations.
Snowflake
Fundamentals
Adequate balance sheet with limited growth.
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
Market Performance
7 Day Return
-5.4%
ZEN
-0.9%
US Software
1.8%
US Market
1 Year Return
17.6%
ZEN
22.0%
US Software
7.3%
US Market
Return vs Industry: ZEN underperformed the US Software industry which returned 22% over the past year.
Return vs Market: ZEN exceeded the US Market which returned 7.3% over the past year.
Shareholder returns
| ZEN | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.4% | -0.9% | 1.8% |
| 30 Day | -12.5% | -0.7% | -0.7% |
| 90 Day | -25.0% | -4.2% | 0.06% |
| 1 Year | 17.6%17.6% | 23.7%22.0% | 9.7%7.3% |
| 3 Year | 154.6%154.6% | 119.6%111.0% | 46.3%36.9% |
| 5 Year | 222.3%222.3% | 171.5%151.9% | 64.5%46.5% |
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
2 weeks ago | Simply Wall St
Is Zendesk (NYSE:ZEN) A Risky Investment?1 month ago | Simply Wall St
Are Zendesk, Inc. (NYSE:ZEN) Investors Paying Above The Intrinsic Value?1 month ago | Simply Wall St
Have Zendesk, Inc. (NYSE:ZEN) Insiders Been Selling Their Stock?Valuation
Is Zendesk undervalued compared to its fair value and its price relative to the market?
17.62x
Price to Book (PB) ratio
Share Price vs. Fair Value
Undervalued: ZEN ($67.98) is trading above our estimate of fair value ($60.11)
Significantly Undervalued: 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
Low 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 (17.6x) compared to the US Software industry average (5.5x).
Next Steps
Future Growth
How is Zendesk forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
25.0%
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 (22.7% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: ZEN's revenue (22.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: ZEN's Return on Equity is forecast to be low in 3 years time (17.9%).
Next Steps
Past Performance
How has Zendesk performed over the past 5 years?
-17.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ZEN is unprofitable, and losses have increased over the past 5 years at a rate of -17.8% 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 (19.1%).
Return on Equity
High ROE: ZEN has a negative Return on Equity (-39.03%), as it is currently unprofitable.
Return on Assets
ROA vs Industry: ZEN is currently unprofitable, so its Return on Assets is negative.
Return on Capital Employed
ROCE Improving: ZEN is currently unprofitable, so its Return on Capital Employed is negative.
Next Steps
Financial Health
How is Zendesk's financial position?
Financial Position Analysis
Short Term Liabilities: ZEN's short term assets ($608.9M) do not cover its short term liabilities ($907.4M)
Long Term Liabilities: ZEN's short term assets (608.9M) exceeds its long term liabilities (104.6M)
Debt to Equity History and Analysis
Debt Level: ZEN's debt to equity ratio (110.2%) is considered high
Reducing Debt: ZEN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Balance Sheet
Inventory Level: ZEN has a low level of unsold assets or inventory.
Debt Coverage by Assets: ZEN's debt is covered by short term assets (assets are 1.293780x debt).
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 91.6% per year.
Next Steps
Dividend
What is Zendesk's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate ZEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ZEN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
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
What is the CEO of Zendesk's salary, the management and board of directors tenure and is there insider trading?
2.2yrs
Average management tenure
CEO
Mikkel Svane (48yo)
12.2yrs
Tenure
US$3,303,579
Compensation
Mr. Mikkel Asger Svane has been Director at Stitch Fix, Inc. Since October 16, 2018. Mr. Svane Founded Zendesk, Inc. in 2007 and has been its Chief Executive Officer since August 2007. Mr. Svane served as  ...
CEO Compensation Analysis
Compensation vs. Market: Mikkel's total compensation ($USD3.30M) is about average for companies of similar size in the US market ($USD6.79M).
Compensation vs Earnings: Mikkel's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
2.2yrs
Average Tenure
49yo
Average Age
Experienced Management: ZEN's management team is considered experienced (2.2 years average tenure).
Board Age and Tenure
2.0yrs
Average Tenure
55yo
Average Age
Experienced Board: ZEN's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: ZEN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer Founder |
| Shares | 100,000 |
| Max Price | US$77.04 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$90.30 |
| Entity | Individual |
| Shares | 3,000 |
| Max Price | US$89.31 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$78.11 |
Ownership Breakdown
Management Team
InaMarie Johnson (54yo)
Chief People Officer
- Tenure: 1.3yrs
- Compensation: US$5.39m
John Geschke (48yo)
Chief Legal Officer & Senior VP of Administration
- Tenure: 4yrs
- Compensation: US$1.06m
Tom Keiser (53yo)
Chief Operating Officer
- Tenure: 2.2yrs
- Compensation: US$2.85m
Mikkel Svane (48yo)
Founder
- Tenure: 12.2yrs
- Compensation: US$3.30m
Alexander Aghassipour (51yo)
Founder & Chief Product Officer
- Tenure: 12.2yrs
Morten Primdahl (45yo)
Co-Founder
- Tenure: 0yrs
Elena Gomez (49yo)
Chief Financial Officer
- Tenure: 3.4yrs
- Compensation: US$2.87m
Norman Gennaro
Senior Vice President of Worldwide Sales
- Tenure: 1.8yrs
- Compensation: US$6.93m
Colleen Berube
Chief Information Officer
- Tenure: 0.7yrs
Christina Liu
Chief Accounting Officer
- Tenure: 0.3yrs
Board Members
Carl Bass (61yo)
Lead Independent Director
- Tenure: 0.8yrs
- Compensation: US$316.27k
L. Wilson (55yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$268.55k
Tom Szkutak (58yo)
Director
- Tenure: 0.8yrs
Caryn Marooney (51yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$311.13k
Mike Frandsen (57yo)
Independent Director
- Tenure: 1.9yrs
- Compensation: US$306.02k
Mikkel Svane (48yo)
Founder
- Tenure: 12.2yrs
- Compensation: US$3.30m
Hilarie Koplow-McAdams (55yo)
Independent Director
- Tenure: 2.1yrs
- Compensation: US$256.05k
Mike Curtis
Director
- Tenure: 0.5yrs
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$7.545b
- Shares outstanding: 110.98m
- 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 |
Biography
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 a ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/18 00:12 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.