Shares of customer-service platform Zendesk (NYSE: ZEN) jumped on Wednesday, rising as much as 14.9%. As of 12:52 p.m. EST, the stock was up about 6%.
The stock’s gain was fueled by the company’s fourth-quarter update, which featured accelerating revenue growth and a better-than-expected non- GAAP profit.
Zendesk platform. Image source: Zendesk.
Revenue in Zendesk’s fourth quarter rose 41% year over year, to $172.2 million. This is an acceleration from the company’s 38% year-over-year revenue growth rate in Q3. This revenue growth easily surpassed management’s guidance for revenue between $164 million and $166 million.
The company’s non-GAAP earnings per share for the period was $0.10, up from $0.01 in the year-ago quarter. Analysts, on average, were expecting non-GAAP earnings per share of $0.03.
“We continue to deliver strong revenue growth from small and midsized businesses and large enterprises,” management said in Zendesk’s fourth-quarter shareholder letter. “Our upmarket momentum continued as we partner with enterprises to serve increasingly complex use cases.”
For the company’s first quarter, management said it expects revenue between $178 million and $180 million, translating to 38% year-over-year revenue growth based on the midpoint of this guidance range.
For the full year, management expects revenue to be between $795 million and $805 million, up from $599 million in 2018.
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