Zendesk rises after Q4 earnings top expectations, rejects takeover offer

Feb. 10, 2022 4:23 PM ETZendesk, Inc. (ZEN)By: Chris Ciaccia, SA News Editor1 Comment

SF Mayor Ed Lee Attends Opening Of Cloud Based IT Company In San Francisco

Justin Sullivan/Getty Images News

Zendesk (NYSE:ZEN) shares rose in after-hours trading after the customer service software company reported fourth-quarter results that were better than expected and it rejected a takeover offer from private equity.

The San Francisco-based Zendesk said it earned an adjusted 17 cents a share on $375.4 million in revenue for the period, up 32% year-over-year. A consensus of Wall Street analysts expected the company to earn 18 cents per share on $369.81 million in revenue.

Zendesk shares rose slightly more than 1.5% to $116.04 following the results.

Led by Chief Executive Mikkel Svane, Zendesk also gave guidance for the quarter ending March 31, saying it expects revenue to be between $381 million and $387 million, with Non-GAAP operating income between $20 million and $26 million.

It also provided full-year guidance, saying it expects to generate between $1.675 billion and $1.705 billion in sales, with non-GAAP operating income between $117 million and $137 million. Free cash flow for the full-year is expected to be between $165 million and $195 million.

In addition, Zendesk said that it rejected an "unsolicited" bid from a consortium of private equity firms to acquire Zendesk in an all-cash transaction valued between $127 and $132 per share. Zendesk said the bid "significantly undervalues" the company.

The company will hold a conference call at 5 p.m. EST to discuss the results.

Earlier on on Thursday, it was reported that several private equity firms, including Thoma Bravo LP, were looking to acquire Zendesk.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.