Zendesk +4.6% on Q4 beats, upside guidance, analyst upgrade

|By:, SA News Editor

Zendesk (NYSE:ZEN) shares are up 4.6% premarket following yesterday’s Q4 report that beat EPS and revenue estimates.

Upside Q1 guidance: Revenue, $125M to $127M (consensus: $123.06M); non-GAAP operating loss, $3M to $5M.

Upside FY18 guidance: Revenue, $555M to $565M (consensus: $553.45M); non-GAAP operating loss, up to $5M; FCF, $25M to $30M 

Note that guidance is with new revenue recognition standard ASC 606. 

Key metrics: Non-GAAP operating loss, $2.4M; operating expenses, $117M; cash and equivalents, $109.4M. 

Press release 

Analyst action: Stephens upgrades Zendesk from Underweight to Equal Weight and increases the price target from $34 to $41, a 7% upside on yesterday’s close.              

Previously: Zendesk beats by $0.03, beats on revenue (Feb. 6)

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