Software company Zendesk increased revenue by 30%
Customer service software provider Zendesk Inc. (ZEN) has published a report for the first quarter of 2022. Zendesk is increasing revenue at a double—digit pace and is taking additional measures to increase profitability. In the last quarter ended March 31, Zendesk’s revenue increased by 30% year-on-year to $388.3 million.
GAAP loss was $66.9 million, loss per diluted share $0.55. Zendesk successfully sells a variety of customer relationship management (CRM) solutions optimized for retail, technical support services, trading platforms and other potential customers. Zendesk provides tools for the work of large consulting companies and IT service providers, for example, such as the Indian Tata Consultancy.
For the whole of 2022, Zendesk expects a revenue of $1.68—$1.71 billion, free cash flow of $175—$190 million and GAAP operating loss between $221—$201 million. In order to increase profitability in the second quarter, the board of directors of Zendesk approved the sale or sublease of part of the real estate owned by the company should note that on April 20, there were reports of a sale of Zendesk.
Sources from two leading news agencies at once reported that Zendesk hired specialists from the investment bank Qatalyst Partners to contact potential buyers. Earlier, in February 2022, the idea of an M&A deal with Momentive Global (the parent company of the SurveyMonkey could service) rejected by Zendesk shareholders. Shareholders also rejected offers to buy Zendesk by unnamed private investors.
