ZEN Analyst Ratings, MarketBeatĪnalyst Alex Zukin from RBC Capital issued the highest price target and shared this perspective, which I agree is foundational to the long-term investment thesis. The average price target for these updates is a little over $103, representing about a 19% gain over the closing price on Feb 7th. Zendesk Q4 2019 Shareholder Letter Analyst Reactionsįollowing the earnings results, all 6 analysts who updated their coverage raised price targets and reiterated their buy ratings. For products outside of Support and Chat (the oldest products), customer count almost doubled. Overall customer count grew 15% year over year.Total RPO at end of 2019 was up 57% over 2018, with current RPO up 40% and long-term RPO up 132% year-over-year. RPO represents future revenues that are under contract, but haven’t been recognized. RPO (Remaining Performance Obligations) growth was strong.Zendesk leadership has published a target of 110-120% for DBNER, so this quarter’s rate is in range and slightly above midpoint. This compared to 119% in Q4 2018, and was even with 116% in the prior quarter. Sales from deals with partners more than doubled in 2019. Expanded partner network to include over 1200 partners, which is an increase of 50% over a year ago.Increased focus on enterprise sales, by hiring more account executives and solutions consultants with enterprise experience.The Sell product is being sold by the main Zendesk salesforce starting in February.New capabilities added to the Guide Enterprise knowledge management product, including AI-powered content cues to prompt for new knowledge coverage.This allows third party developers to distribute new apps through the Sell Marketplace. Integrated Sell, the Sales Force Automation tool, with the Zendesk app development framework. ![]() Launched Sunshine Conversations, a new omni-channel messaging platform.Several incremental features and capabilities in Sunshine, the new open CRM platform.Added integration between Zendesk Support and WhatsApp.Launched Gather – a new product for managing online community forums for customers.Rolled out several new product improvements in Q4 2019:.Percent of total revenue from customers with 100 or more Zendesk Support agents grew to 43% in Q4 2019, versus 40% in Q4 2018 and 42% in the prior quarter. Drove revenue growth and larger average deal sizes. Zendesk Suite, which is the bundle of Support, Guide, Chat and Talk, customer count exceeded 6,000.This implies that revenue growth in EMEA and APAC was lower, representing potential upside. (ZEN’s most mature market) was 38%, while growth in LATAM was 49%. Full year revenue growth in just the U.S.Non-GAAP gross margin of 75.3% for full year 2019, compared to 73.3% for 2018. Non-GAAP gross margin of 76.7% for Q4 2019, compares to 74.3% in prior year period. ![]()
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