Zendesk Inc

Zendesk has accelerated its revenues by 29% this quarter and witnessed a solid growth in bookings and RPO driven by strong increases in sales to Enterprise customers and the continued adoption of Zendesk had a solid 2021 and saw a staggering 32% top-line growth in the last quarter with revenue of $375 million. The company’s total annual revenue of $1.34 billion was also 30% above 2020 levels exceeding Wall Street expectations. The management was able to scale its successful enterprise customers in 2021, thanks to the Suite’s adoption and maturing go-to-market strategies. Customer accounts with annual recurring revenue of more than $250,000 now account for 38% of the company’s total annual recurring revenue which is an excellent update. Financial Services became another great example of an industry where disruptors and established brands turn to Zendesk for their time to value throughout the year, particularly in Q4. We remain optimistic about Zendesk and give it a ‘Hold’ rating with a revised target price.