Zendesk, Inc. (NYSE: ZEN) today announced it has acquired
FutureSimple Inc., the company behind Base. Base is known for
building modern, easy-to-use sales force automation software
designed to help salespeople do their jobs more effectively.
Zendesk will invest in Base’s ongoing market growth and product
development, focusing on existing customers and delivering products
for smaller, fast-growing sales teams, expanding to larger
organizations over time.
“Base is a natural fit with Zendesk because we both share a
passion for designing beautiful products built for the people who
actually use them,” said Mikkel Svane, founder and CEO, Zendesk.
“We want to do for sales what Zendesk has already done for customer
service: give salespeople tools built around them and the customers
they serve.”
Founded in 2009, Base is a modern sales solution that provides
integrated tools for communication, lead scoring, reporting and
more. The company is widely recognized by customers and industry
analysts for its leading mobile app and a user-friendly experience.
Gartner has positioned Base as a Visionary in the July 2018 Magic
Quadrant for Sales Force Automation1.
Base and Zendesk last year launched an integration between their
products, bringing together support and sales information about
customers. Among the companies using it is home loan education
platform Mortgage Coach. Its director of IT and QA support services
called the integration seamless and said it ultimately saved the
team countless hours of data duplication.
While legacy sales force automation tools are designed around
rigid management processes that discourage salespeople from using
them, Base gives sales teams the information and context they need
to be effective and successful with prospects and customers. The
result is a tool that helps salespeople work and sell more
easily.
“Legacy sales tools were never built for the people actually
using them. Our core philosophy in building Base, was to create a
world-class experience for sales professionals to help them close
more deals,” said Uzi Shmilovici, founder and CEO, Base. “Just like
Zendesk set out to improve the customer experience, we set out to
dramatically improve the sales experience for 30 million sales
professionals worldwide. We are thrilled to be joining Zendesk in
building the future of customer experience software.”
Currently serving over 5,000 customers globally across
industries, Base has offices in San Francisco and Krakow, Poland.
All of Base’s customers will continue to receive support and
services, and the Base team will all be offered roles at Zendesk.
Matt Price, formerly Zendesk’s senior vice president, product
portfolio, will lead a team dedicated to growing Base across
product and go-to-market.
“The Base team is perfectly suited to join Zendesk in our
mission to deliver helpful, easy to use, flexible and scalable
products focused on the customer,” said Matt Price, senior vice
president and general manager, Base. “Together we will build deeper
integrations with our products so sales and service can more easily
collaborate.”
Terms of the transaction were not disclosed. For the year ending
December 31, 2018, the acquisition is not estimated to have a
significant impact on Zendesk's revenue and is expected to be
dilutive to GAAP and Non-GAAP operating margin and earnings per
share. These estimates reflect a reduction relating to fair value
adjustments to acquired deferred revenue. Zendesk will provide
further detail on the actual and expected impact of the acquisition
on its results of operations for the year ending December 31, 2018
when it releases financial results for the quarter ending September
30, 2018.
For more information about Zendesk and Base, check out the
Zendesk blog.
About Zendesk
The best customer experiences are built with Zendesk. Zendesk’s
powerful and flexible customer service and engagement platform
scales to meet the needs of any business, from startups and small
businesses to growth companies and enterprises. Zendesk serves
businesses across a multitude of industries, with more than 125,000
paid customer accounts offering service and support in more than 30
languages. Headquartered in San Francisco, Zendesk operates
worldwide with 15 offices in North America, Europe, Asia,
Australia, and South America. Learn more at www.zendesk.com.
Forward-Looking Statements
This press release contains forward-looking statements,
including, among other things, statements regarding Zendesk’s
future financial performance, its investment in existing products
or business lines and new or acquired products and business lines
to grow its business, and progress towards its long-term financial
objectives. The words such as “may,” “should,” “will,” “believe,”
“expect,” “anticipate,” “target,” “project,” and similar phrases
that denote future expectation or intent regarding Zendesk’s
financial results, operations, and other matters are intended to
identify forward-looking statements. You should not rely upon
forward-looking statements as predictions of future events.
The outcome of the events described in these forward-looking
statements is subject to known and unknown risks, uncertainties,
and other factors that may cause Zendesk’s actual results,
performance, or achievements to differ materially, including (i)
adverse changes in general economic or market conditions; (ii)
Zendesk’s ability to adapt its products to changing market dynamics
and customer preferences or achieve increased market acceptance of
its products; (iii) Zendesk’s ability to effectively expand its
sales capabilities, (iv) Zendesk’s ability to effectively market
and sell its products to larger enterprises, (v) Zendesk’s
expectation that the future growth rate of its revenues will
decline, and that, as its costs increase, Zendesk may not be able
to generate sufficient revenues to achieve or sustain
profitability; (vi) the market in which Zendesk operates is
intensely competitive, and Zendesk may not compete effectively;
(vii) the development of the market for software as a service
business software applications; (viii) Zendesk’s ability to
introduce and market new products and to support its products on a
shared services platform; (ix) Zendesk’s ability to integrate
acquired businesses and technologies successfully or achieve the
expected benefits of such acquisitions, including without
limitation the acquisition of Base; (x) Zendesk’s ability to
effectively manage its growth and organizational change; (xi)
breaches in Zendesk’s security measures or unauthorized access to
its customers’ data; (xii) service interruptions or performance
problems associated with Zendesk’s technology and infrastructure;
(xiii) real or perceived errors, failures, or bugs in its products;
and (xiv) Zendesk’s substantial reliance on its customers renewing
their subscriptions and purchasing additional subscriptions.
The forward-looking statements contained in this press release
are also subject to additional risks, uncertainties, and factors,
including those more fully described in Zendesk’s filings with the
Securities and Exchange Commission, including its Quarterly Report
on Form 10-Q for the quarter ended June 30, 2018. Further
information on potential risks that could affect actual results
will be included in the subsequent periodic and current reports and
other filings that Zendesk makes with the Securities and Exchange
Commission from time to time, including its Quarterly Report on
Form 10-Q for the quarter ending September 30, 2018.
Forward-looking statements represent Zendesk’s management’s
beliefs and assumptions only as of the date such statements are
made. Zendesk undertakes no obligation to update any
forward-looking statements made in this press release to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law.
1 Gartner does not endorse any vendor, product or service
depicted in its research publications, and does not advise
technology users to select only those vendors with the highest
ratings or other designation. Gartner research publications consist
of the opinions of Gartner’s research organization and should not
be construed as statements of fact. Gartner disclaims all
warranties, expressed or implied, with respect to this research,
including any warranties of merchantability or fitness for a
particular purpose.
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Zendesk, Inc.Analisa Schelle, 510-292-5410press@zendesk.com
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