SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

Press Release: Zendesk Announces Fourth Quarter -2-

· 02/04/2021 16:15
Condensed Consolidated Statements of Operations (In thousands, except per share data; unaudited) Three Months Ended December 31, Year Ended December 31, ----------------------- ------------------------- 2020 2019 2020 2019 ------------ --------- ----------- ------------ Revenue $283,498 $229,871 $1,029,564 $ 816,416 Cost of revenue 67,219 61,749 251,255 234,282 -------- -------- ---------- --------- Gross profit 216,279 168,122 778,309 582,134 Operating expenses: Research and development 71,134 55,719 255,400 207,548 Sales and marketing 142,897 110,764 512,339 396,514 General and administrative 57,041 33,941 166,469 141,076 -------- -------- ---------- --------- Total operating expenses 271,072 200,424 934,208 745,138 -------- -------- ---------- --------- Operating loss (54,793) (32,302) (155,899) (163,004) Other income (expense), net: Interest expense (14,258) (6,823) (43,319) (26,708) Loss on early extinguishment of debt -- -- (25,950) -- Interest and other income (expense), net (1) 3,646 12,751 21,409 -------- -------- ---------- --------- Total other income (expense), net (14,259) (3,177) (56,518) (5,299) -------- -------- ---------- --------- Loss before provision for income taxes (69,052) (35,479) (212,417) (168,303) Provision for income taxes 984 689 5,761 1,350 -------- -------- ---------- --------- Net loss $(70,036) $(36,168) $ (218,178) $(169,653) ======= ======= ========= ======== Net loss per share, basic and diluted $ (0.60) $ (0.32) $ (1.89) $ (1.53) ======= ======= ========= ======== Weighted-average shares used to compute net loss per share, basic and diluted 116,986 112,496 115,240 110,606 ======== ======== ========== ========= Condensed Consolidated Balance Sheets (In thousands, except par value; unaudited) December 31, December 31, 2020 2019 -------------- ---------------- Assets Current assets: Cash and cash equivalents $ 405,430 $ 196,591 Marketable securities 565,593 286,958 Accounts receivable, net of allowance for doubtful accounts of $5,787 and $2,846 as of December 31, 2020 and 2019, respectively 199,243 127,808 Deferred costs 51,878 35,619 Prepaid expenses and other current assets 53,829 45,847 ------------- ------------- Total current assets 1,275,973 692,823 Marketable securities, noncurrent 428,678 361,948 Property and equipment, net 94,208 102,090 Deferred costs, noncurrent 52,731 35,230 Lease right-of-use assets 84,013 89,983 Goodwill and intangible assets, net 196,218 206,883 Other assets 25,458 25,632 ------------- ------------- Total assets $ 2,157,279 $ 1,514,589 ========= ========= Liabilities and stockholders' equity Current liabilities: Accounts payable $ 15,428 $ 38,376 Accrued liabilities 38,921 36,347 Accrued compensation and related benefits 103,437 61,512 Deferred revenue 378,935 320,642 Lease liabilities 23,533 21,804 Current portion of convertible senior notes, net 132,388 -- ------------- ------------- Total current liabilities 692,642 478,681 Convertible senior notes, net 935,576 483,464 Deferred revenue, noncurrent 4,423 3,320 Lease liabilities, noncurrent 85,275 83,478 Other liabilities 7,532 7,662 ------------- ------------- Total liabilities 1,725,448 1,056,605 ------------- ------------- Stockholders' equity: Preferred stock, par value $0.01 per share -- -- Common stock, par value $0.01 per share 1,174 1,130 Additional paid-in capital 1,344,337 1,155,044 Accumulated other comprehensive income 3,203 591 Accumulated deficit (916,883) (698,781) ------------- ------------- Total stockholders' equity 431,831 457,984 ------------- ------------- Total liabilities and stockholders'

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause Zendesk's actual results, performance, or achievements to differ materially, including (i) the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, Zendesk's business, operations, revenue results, cash flow, operating expenses, hiring, demand for its solutions, sales cycles, customer retention, and its customers' businesses and industries; (ii) other adverse changes in general economic or market conditions; (iii) Zendesk's ability to adapt its products to changing market dynamics and customer preferences or achieve increased market acceptance of its products; (iv) Zendesk's ability to effectively expand its sales capabilities; (v) Zendesk's substantial reliance on its customers renewing their subscriptions and purchasing additional subscriptions; (vi) our ability to optimize the pricing for our solutions; (vii) Zendesk's expectation that the future growth rate of its revenues will decline, and that, as its costs increase, Zendesk may not be able to generate sufficient revenues to achieve or sustain profitability; (viii) the intensely competitive market in which Zendesk operates and the difficulty that Zendesk may have in competing effectively; (ix) Zendesk's ability to effectively market and sell its products to larger enterprises; (x) Zendesk's ability to introduce and market new products and to support its products on a shared services platform; (xi) Zendesk's ability to maintain and develop its strategic relationships with third parties; (xii) Zendesk's reliance on third party services, including services for hosting, email, and messaging; (xiii) Zendesk's ability to securely maintain customer data and prevent, mitigate, and respond effectively to both historical and future data breaches and to securely maintain customer data; (xiv) Zendesk's ability to effectively manage its growth and organizational change, including its international expansion strategy; (xv) Zendesk's ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions; (xvi) Zendesk's ability to comply with privacy and data security regulations; (xvii) potential service interruptions or performance problems associated with Zendesk's technology and infrastructure; (xviii) the development of the market for software as a service business software applications; (xix) real or perceived errors, failures, or bugs in its products; (xx) Zendesk's ability to accurately forecast expenditures on third-party managed hosting services; and (xxi) the amount and timing of any determination of real estate impairments relating to expected lease abandonment matters.

The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in Zendesk's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that Zendesk makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K for the year ended December 31, 2020.

Forward-looking statements represent Zendesk's management's beliefs and assumptions only as of the date such statements are made. Zendesk undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

(MORE TO FOLLOW) Dow Jones Newswires

February 04, 2021 16:15 ET (21:15 GMT)