Zendesk shares rallied nearly 10% after posting strong Q2 results, with revenues showing a minor acceleration from the prior quarter.
This beat continues a longstanding trend of Zendesk beating Wall Street's expectations on the top and bottom lines, but shares have also become much more expensive this year.
One worrying sign: Gross margin fell 110 bps from 700% in 2Q17 to 68.9% this quarter.
The presence of formidable competition from the likes of Salesforce and Atlassian may force a cap on Zendesk's growth in the near term.
Customer service software company Zendesk (ZEN) has been one of the most popular SaaS plays of the year. Looking at the company's earnings history, it's fairly intuitive to understand why: Zendesk has been