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The IPO market has been hobbled by a technology sell-off after a period of lofty valuations. This prolonged correction has driven down IPO returns, evidenced by the Renaissance IPO ETF (symbol: IPO) testing its lows for the year. Companies offering enterprise software have all but disappeared as high-profile IPO filers like Box and TubeMogul delay setting terms in such a hostile IPO environment.

Enter Zendesk (NYSE:ZEN). Offering its integrated customer service platform to small and medium-sized businesses, it is the first enterprise software IPO in a month. The company jumped 49% on its first day of trading today, causing some to wonder if this might mark the end of the downward tech slide. Based on the industry's trading this year, the jury is still out. The past 11 enterprise software IPOs averaged 40% on their first day of trading, but have fallen 30% since then, producing an average total return of -8%. Only one company, 2U, now trades above its IPO price. The last enterprise software IPO to spike as high as Zendesk was Castlight Health (NYSE:CSLT), down 62% from its first-day close.

Before we take it as a sign that the IPO market has turned a corner, Zendesk will need to show a healthy follow-through to its strong start.

YTD Enterprise Software IPOs
Company (Ticker) Description Trade Date 1st Day After-market Total Return
Zendesk (ZEN) Customer service SaaS platform 5/15 49% ?% 49%
Paycom Software (NYSE:PAYC) Payroll and HR software 4/15 2% -7% -5%
Five9 (NASDAQ:FIVN) Cloud-based call center software 4/04 9% -24% -17%
Opower (NYSE:OPWR) Energy usage software for utilities 4/04 21% -28% -13%
The Rubicon Project (NYSE:RUBI) Digital ad exchange 4/02 34% -34% -12%
2U (NASDAQ:TWOU) Enables online degree programs 3/28 8% -4% 4%
Amber Road (NYSE:AMBR) Global trade management SaaS 3/21 31% -28% -6%
Borderfree (NASDAQ:BRDR) Software for int'l e-commerce 3/21 25% -32% -15%
Q2 Holdings (NYSE:QTWO) Online banking SaaS platform 3/20 17% -25% -13%
Paylocity (NASDAQ:PCTY) Payroll and HR SaaS 3/19 41% -32% -3%
Castlight Health (CSLT) Healthcare comparison software 3/14 149% -62% -6%
Varonis Systems (NASDAQ:VRNS) Unstructured data software 2/28 100% -53% -6%
Average 40% -30% -3%

Source: Zendesk Pops 49%; Take A Deep Breath And Wait For The Follow-Through