ZEN - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Zendesk Q4 and Full 2019 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Marc Cabi. Thank you. Please go ahead, sir.

Marc Cabi

Jason. Thanks, and us everybody, for thanks afternoon, today. joining Good and XXXX earnings to our year quarter fourth Welcome call. full

are We pleased to results. report our

Joining Officer. are today Chair and the Founder, Gomez, on Elena Financial and Board; of Mikkel Chief our CEO the me Svane, call

presentation results for and of ability XX, XX-Q these Form to we may course to ended our XX, retain report and to ended as on prior obligation factors are release to forward-looking on the to our and and assumptions, for today's attract statements with release that earnings after take Risk product annual We Please quarterly our XXXX, actual the including performance, compete the or refer in could year more call, future ability press our contained and XXXX. update regarding XX-K to December financial risks today's and today's these effectively. our development, Factors statements Form required the law. affect September as our upcoming forward-looking section subsequent Securities such the in During Commission, of Exchange statements growth our regarding information The no quarter prospects, customers in statements except undertake for report changes results by conform or statements. earnings to actual expectations, filings

not in from, to, and information. GAAP isolation The During financial addition measures a or both be we non-GAAP financial measures. this considered present GAAP will call, non-GAAP financial substitute our should in as for

for releases of those financial measures, earnings website. release, earnings find periods, measures reconciliations measures, regarding comparable our available You shareholder certain which GAAP of including press for financial press additional on the prior non-GAAP financial all today's non-GAAP in disclosures periods, are can letter and, these in with

I introduction, turn the brief to would over to Mikkel. like this call With

Mikkel Svane

for Thank introduction. Thank you. you that

Marc Cabi

course. Of

Mikkel Svane

everyone. good and Marc, afternoon, Thanks,

XX% We XXXX the are a a full multibillion-dollar entering company. become with strong across revenue we our demand saw in to strong growth, revenue ended continue We XXXX and year position business.

crossing to $X this We year. are revenue mark the billion way on well our

confident that service saw with the grew strong market is CRM Sunshine while product innovation is omnichannel in our and CRM customer our we the Sell In broader feel for We in footprint experience Zen also our our new growth our Suite, XXXX, our globally. solution, leadership platform. and customer which we demand through fueling Zendesk in sales

We are company. In and And XXXX, customer and helping we every experience become CRM of experts conversation expectations. and buy continue expertise business world on use. our every businesses powering a we with innovation investments plan in consider a broader CRM focus ourselves rapidly to the point for easy to as CRM customer making bringing our to touch service-first we easy software easy try, that and to customer-facing up to customer-facing changing customers keep in with

us. of of believe the even but in celebrated proud business of of momentum and achievements areas, enterprise and are we our We we have teams bigger opportunity the large U.S., great both also an our have ahead in our outside

the to you in to for too. all thank biggest our all to hope see teams to and Thank month, you Zendesk partners. conference our and an our launches for Thank next all of customers. all XXXX. Miami excited during sun, share am you the So new our super-duper I I user to Relate our stuff you amazing under Zendesk XXXX there,

results. over share that, with about to more Elena, much So to you our

Elena Gomez

our with CRM strong XXXX Sounds XXXX momentum our that given Mikkel. We're performance entering accomplishments and innovation. in in extended our Thanks, good. leadership

reflects XX% million $XXX year-over-year. growth full year the of For delivered which XXXX, we revenue

investing year of reflect high our initiatives. and results commitment to scale basis non-GAAP full while margin XXX growth We driving long-term These improvement also delivered operating points. growth in

couple our years XX%, our past of the up up strong continued the of by over proxy upmarket. for move ARR agent adoption XXXX, solutions omnichannel up been -- At year-over-year. Our and end was market -- was percentage has XX from enterprise driven or X of growth a as favorable from our dynamics, of -- points seats XXX-plus XXX-seat was

RPO at end moving do our RPO XX% These year-over-year, with of customers. with longer-term was up larger, Our XXXX our as RPO engagements year-over-year. metrics and XX% highlight we strategic up and long-term more current success up XXX% upmarket

experience high customers demand We their as expect to factors to their continue market customer transform organizations solutions for drive serve to our better. businesses

us. a enable have with companies in the Over Zendesk. of been -- partners customer a We to platform is solutions past part, believe companies and to this introduced which we result modern is, on enterprise build natively our gravitating part experience X work capabilities believe newly both years, this

In investments, the broaden These growing move valued our platform, Sunshine should with our over allow a CRM our being work several to we XXXX, rate us our at foster and to key partners. years. we with motions. in enterprise some to high-growth are next XXXX, In grow investment in made intend upmarket, investments turn, Conversations sustained Sunshine

XX% guidance. improvement approximately XXXX, $X midpoint. with while billion of revenue. billion $X.XX year stated XXX of to providing the of committed guidance to guidance reflecting growth growth, expect scale points at investing midpoint. In of non-GAAP full for We're on operating to XXXX income we our full at We're year $X.XX goal year-over-year margin basis the year-over-year Now for previously delivering to exceed which billion, XXXX our reflects

all employees. be partners term, and to of Longer customers, a we're with on company building to Mikkel multibillion-dollar revenue excited be as our journey this our our said, and you,

Thank over Marc. the you. to back I'll call And turn now

Marc Cabi

It enter Relate. of is become excited long our And X as innovation as if company. experience Mikkel hosting vision to for in We're able we're watch our annual as have service-first make more can't term. website our -- with our this through this company the to event that user we if in conference. company our you'll March customer CRM multibillion-dollar stated, about momentum. and CRM a hope XXXX not Miami, building On position as We're We we're Zendesk out Elena. investor revenue -- and our Thanks, over And leading a analyst already please you future. it. you to register event, can feel make watch or free event be At about it you solutions sure it. for to be learn part

year impact million like impact revise up a in to invoice the year. delaying billings. spend cash plan talking guidance cadence range a $XX will customers, we the to to by a to $XX also how a this I'd have our That for moment month full and onetime about similar our Embedded specifically is flow is free million of collections invoice that guidance. cash X to XXXX

up call with And for turn who I'll the Q&A. that, over will set to us Jason back

Operator

[Operator Instructions].

question first Wells of line Winslow comes Your from Fargo. the Phil from

Philip Winslow

to Congrats too. comment receivables, that guess, follow-up close sort the through what's affect us and there that. change sort the billings Actually, just you going on the in you walk terms, guess, the I one going of items? last of to of made, Could about Marc, in to focus and, I billings Then changing, year. mechanics of I that on wanted -- to it's that's just just affect how

Marc Cabi

friction to their at days early days prior then the the with customer we So their has, renew around renewal, of invoiced which days end subscription will invoice their renew. customers experience, when of be customers Zendesk, XX will renewal. our our a XX the create notifying view, better -- that in To from is them exactly subscription day actually they on of customers we and created our

collections types kind our result slide will presumably when to SaaS subscribe days this they that people consistent practice software. used so what is most of industry with XX as and to a are And by And of that. up to of

Philip Winslow

to through XXXX little old then side. just sort quite framework doubling of some because down it about a particularly framework. the new -- just follow-up sort of one that I'm wondering incremental like you doesn't on initiatives you talked in XXXX here that last walk that terms fit of if you're that on And expansion, go-to-market what's sounds about it. of sort us it of different that May, and in the could Got margin your growth versus and -- clearly

Elena Gomez

that. take I'll Yes.

year, like reflecting launch last of know, our constantly you on will, more growth on XXXX, point So for in you dialogue, focusing we're balancing invest. enterprise, know, was lean always to Phil, this the partners Sunshine felt if just, you formally essentially, opportunity starting but as to we and us use about as thinking begin our to we and profitability, -- so us, so and framework a as as we were an gravitating we

that's point. why there's to And from that's always debate -- drive no operating And starting margin. but we continue that, that really departed a so will we

that. So that's about say all I'll

Operator

Evercore ISI. from of next comes from line question the Kirk Materne Your

Stewart Materne

I actually the your comments. think prepared each of momentum you word mentioned in

there's size helpful I want and to around you translate if to momentum So you into might solid more you good It the seeing the just if front. of shape that anything what that that of context know out through deals, that's put maybe I you're was makes carrying multiproduct don't the whether just about in comments. fourth that nature feel really call deals. is those after a wondering quarter, the help could on some be pipeline

Marc Cabi

So I'll start.

we seen Zendesk do new some well create we're our what partners last that you acceptance we think as a work seeing pleased forefront customer mature paradigm. year. with and natively where we're those we're as by then of made to of that. We've products you to both customers I the capabilities acquisition growing platform us, Smooch better where And from capabilities we're especially Sunshine our create experiences. can point as with is on very there, are to at know, as the build we of a seeing enterprise the interest behind interest messaging And think

being know our being are too. existing positively, messaging are Our want to capabilities you And add highly instituted, reacting also Sunshine are which if products, I don't within platform Conversations anything. capabilities messaging demanded. our customers

Mikkel Svane

around around lot seeing And QX we're great new interest going of feel or strong these in deals, of great economy. we riding momentum the like, with interest a momentum the that -- Definitely, that world things in of the lot a XXXX. like new different board into our platform and saw the days macro that But products. in hedging our great like, we initiatives commitments, we're across there's on both

Stewart Materne

Around follow-up. some maybe Great. one leadership you And last in Europe, just year. guys Europe changes in then made

XXXX, of guess, all you for demand go-to-market of operations head in after see go it? set that to As sort up the of just then shaping kind terms and have we up how, do market you you in I that

Mikkel Svane

do, the team prior like great talked a unevenness had from a that they've of us really quarter, rather We say on So and identifying have I started we better our lot about in progress about feel than just in still upfront I an can want so that's things. a we celebrate we quarter. done our we I'm else. regions, here just work They of proud feel we to some anything but amazing and that all focusing indicator that. there. that And we to Europe, year think also opportunity the Like, have their of lot our last some achievements

Operator

Sachs. Your Goldman from question the from next comes line Chris Merwin of

Christopher Merwin

there I the like deals know order out closed it well, fourth of those could deals And the large pretty sounded extent in magnitude you ask, out some so about QX. as last quarter, anything to helpful. say were wanted and all of be you I enterprise that called of to some quarter, would just there slipped deals

Elena Gomez

so about actually quarter. that. early Sure. deals fact, in we close talk those did the Yes, in And Yes. did

So happen billings for in see you to really team pleased we're Kudos and reacceleration QX, that our early through -- that. saw to in quarter. that the the making sales so

important you to know, As that's us.

So yes, the team. of really proud

Christopher Merwin

out curious, any benefited then degree maybe these share metric products like products. expansion? just It Anything you Sell. about of And enterprise that But these that quarter. I great. a stable know the there, I and I looks while. focus follow-up. to been color in what market products? pretty mean wanted you the now an to more was in That's And could further now Explore net with there's obviously, ask those a two just on can traction say about have

Mikkel Svane

making the while true is Like, both customers market. use for deals Well, The of for first difference the attachment with a an the for ease is product a our analytics unprecedented to and and satisfied powerful platform. Explore. kind this is foremost, we're very, us differentiator product Explore huge very incredibly being in of for and adoption our

sorry, front to very on that to as year next you this we excited invest Explore, So about the we're that -- adoption or our -- have of in year, can and see more expect product. continued

kind and back-end really Sell a done Like, with I really, here of course, fun while, lot working say. has things our We've integration. of interesting, different would on the been initial of all year

up a lot about So organizations, at customer and cool us the and we that March. excited about service stuff sets very more I have just for are building across more in even Relate to talk that. sales

Elena Gomez

Yes. And main with the them now. we've moved Sell, sales into force

change was we made this a new So month. that starting

mean people people selling Sell good. gets I more more that's really that products. So our selling flagship and

So...

Operator

Your next question Ken of comes the Wong Securities. Guggenheim line from from

Ken Wong

revenue guess, Elena, it The little than, wider QX, year-end question, ranges, for when your first I guess, the I a and look for to. guess, for I it I at used looks where

anything that, kind was wondering should Just there behind aware we that of be of. if

Elena Gomez

a just be $X of turning really was a to page company. the No. reflection I billion mean us it

size If guidance changed, at guide But philosophy now, we do it we and larger you much -- time look how our way to just it that we're at our and scale was It hasn't that think we it now. to the right scale just hasn't sort needed changed. range. like given was of felt about the widen

Ken Wong

a a in to And QX it. there billings a kind 'XX? -- QX. what any that was we obviously, of year, maybe we color next great. to Or Should Got as of be about there expect return follow-up, -- more from we as to X think how saw would bit then split

Marc Cabi

Ken. Yes,

more customers difficult annually, about just quarterly. quarter-to-quarter the are us for invoice because only our rest billings calculated of or So half monthly a is thing

But on customers. opportunities any range, we a commented really RPO early in specifically so into within are normally, will we in QX contractual deals good of some continue That's in we called one And variability. quarter, last be enter there year, billings. Current with and of will why to our indicators that RPO obligations out But our closed that growth growth long-term occur. and October.

to look combination of I'd RPO isolation current other. not ask So but growth billings in everyone really calculated and at each a together from

Operator

line Wood the from comes from question of next and Your Derrick Company. Cowen

James Wood

changes a question. and you good last you high-level unevenness changes the of feeling kind the you guess I consistent have I the through execution leadership, are of impact you given these on Congrats how some what saw made, a QX? some seen productivity the for XXXX? And on quarter. stage year how mean about sales of signs structural went as you more or structural I guess set a in

Elena Gomez

Yes.

that actually, So That's a sure the team change, the excited I'm integrated. not Velocity guess, the structural focus. about lot about has been -- Sell I that's That created right. We we're of talked actually. and where

I what that's think referencing. you're

productivity encouraged we're of yes, gate. by the So the out

that's do just Mikkel about we have along it, think that addition think -- and in work talked about feel I those good So I leadership, that. changes, and to terms we of the also still globe. all to some around in

seeing. we're encouraged So what by plenty do, of got to work we we're but still

James Wood

the SIs see does Or Okay. Should that leaning see is investment into Or formalize And that about Zendesk? XXXX start XXXX think the around we practices sound more larger in to expect is it as to like is in channel. something more event? part a we something aggressive can to XXXX? of

Marc Cabi

people things build some to and time Wipro of like their offerings and including I relationships the say Accenture. through can capabilities that with to now SIs, others channel we've use take with the have think like part to we build. platform will customers We made big we'll on. that that already to we go partners Accenture -- to and more year. say as They have their some ones those progress have as more they offer I

about will pretty this said the shown. year see we're to be from I interest a excited before, this would -- early quarter, this is they've some we partners. fourth the we the And year contribution think by expect So where,

Operator

comes of Stanley. Your Zlotsky line from the next question from Stan Morgan

Stan Zlotsky

couple of A end. from questions my

but investors for imperfect worth, the it. of and do nature it's focus one realized I -- billings, on First what

we happening back -- -- in and more you we should changes? cash So year think enterprise free result changes collection of revenue a the especially, invoicing growth next hit little when between the rather the bit towards the collections, presumably would year a the flow about to of that as a of half well, invoicing, cash delta lot in have the about and billings how think these growth when

Marc Cabi

Yes.

of versus monthly So I billings about it kind our business. in think That's delay in have how you have Remember, think I there. a we as have cash to some of as collections made our XX-day my customers assumptions. well as both book

how building But So you card. those about should that's of aren't credit they're because kind on customers model. impacted your think

Stan Zlotsky

when XXX%, revenue of about above we your XXX%. net revenue retention retention, which at it. for XXX% range How of net midpoint kind is go the are of at look Got flat expected we it thinking as And XXXX? to through stayed your slightly you that

Marc Cabi

for year, That range is XXX%. still XXX% valid to next

Elena Gomez

Yes.

Operator

question next the Piper of Sandler. comes Brent Your from Bracelin line from

Brent Bracelin

really I XX The I first one of customers relatively portion the the here is the around small that had in question kind installed here, look and X,XXX-plus months question Suite. one follow-up. If Zendesk adoption, still that's base. of at a

follow-up. the to then of data kind accelerate have color you cross-sell? in there? what Any behind to try doing kind that Now you, are things some XXXX again, you're one of quick And

Mikkel Svane

all more I And courage I relatively a this believe just, Like, to like, in channel. customers the going a like, -- takes that experience. on just these takes part. want it -- in takes like, think going than is say, I -- like, small effort customer it don't it's don't that are and single

channels of and ahead the customer curve operations. their forward-thinking, customers So that all really and these service experience these customer are into are bringing

we a where Miami, more have lot innovation has table been excited which actually tremendous we -- been lot more about very we doesn't me adoption we actually the something very sun, amount the have like, about forward put opportunity. to also adoption, a And where it it the we March, is we -- That we believe in like, also are -- in we've like under and that. believe much will to. let the mean talk bring still we to a So look this of

Elena Gomez

first. to continue Yes. in sales much only size, as add And kind that I there deal of start of just we're And success what would continuing that. average The defaults that our early the the That's opening. lot we with to obviously, is thing to see higher. a team is

though a it's appear even some So driving growth it like may for us. really number, small is it

Brent Bracelin

on Good. to And softer encouraging call then growth XXXX? some even that just what said, EMEA. geo, last than follow-up, quarter. by I helpful. could this be in a see would there look in to Anything that any there out trends did color if the the get reacceleration happened APAC quarter very certainly and actually at And improvement But APAC drive

Elena Gomez

to EMEA to focus regions. APAC, others, do And at and there's of Mikkel I to other some in going there's getting I No. alarming countries, and but always think drive I both nothing continue earlier, right portfolio than our than there both better in that mean the it we're to moment. there's of think countries there in leadership be, said nothing a going the say more

Mikkel Svane

for did And some to just for for the things how important set I even QX up look and they for their well very add us bode maybe great numbers very achieve quarter, they're maybe doesn't like, that that, XXXX. though want that

Operator

David question Canaccord. comes line next from the of Your from Hynes

David Hynes

for Mikkel I questions, for and one have one two Elena.

of a customer of these right, experience like to It's the right? and you like, Qualtrics provide, when first naturally guys adjacent the maybe data. access seems think customer it for effort like Mikkel, tons customer firms -- and So voice what platforms, you of or to get Medallia experience I

first. a few So quick questions there

formalized for you do some that that to you third, agree can't? Zendesk have that is So do what at Second, that products view? first, with point? an makes vendors those do area sense And

Mikkel Svane

about, already are kind ensure like, that lot I different things. -- Well, the lot and, in. like, of customer of of And like, all get doing super to like, experience these big of them the yes, of our all of data we customers getting points course, data that is and it's super we like, in expectations interested Zendesk it. platform and around think and points these experience experience interesting. all sentiment providing customer Like, these a actual help a things great kind are these A part

providers integration And and so do and market -- working with them. a with the we of in have the a of lot lot

we're these us. cetera, do it's definitely interesting yes, around we et measuring NPS, -- et things, things especially And some definitely So around for super cetera.

invest this solution. we and look the continue is, components in. So have various And into -- be course, area an -- of we parts and of but various to to to

David Hynes

Yes.

the And Elena, the sense. guidance. XX% so XXXX me leads would today, about ratio XXXX revenue. that to to about gave makes the I math get guidance, believe the XXXX exiting of What coverage in XX% are do If same factors coverage change? short-term into midpoint Okay, that which there's cause then, you some cushion on RPO I

Elena Gomez

-- start saying haven't we to as really you guidance really back-end be, by tend just changed we philosophy, know, enterprise. We loaded and on haven't would I our

road. more my for -- upside And down as QX don't we be room use a the SMB-oriented to sort that So tends I of quarter.

So changed. nothing's really

being I just about there. think about guidance thoughtful really it's the

Operator

line comes Sills of question Brad America. Your next Bank from from of the

Bradley Sills

invest it's assume that partners where as Or success will, to in solutions well, of partner and color one are it you both, expansion Sunshine deals? be focus Is of SI primarily is of this the all some about the get the kind kind channel, channel? bigger build on I could getting partners some go-to-market. just you more and could mean repeatable? of more Just play it and on in indications any kind global more developing see but this is probably those on to prebuilt I that goes -- the if real a

Mikkel Svane

giving successful, well and like, products and me full top really part for a they're sure who's from with on as the work more -- with same really it's like, and like they we with already I making it. then Rather the helping amount of of customers all At can is, It be here, having bandwidth us it's like, ourselves, market. credibility. anchored work us of than go product validation of us different to the our builds we And value get that in that. value angles, of from and for get tremendous in markets partners. equation number the where the us, time, think of more kind especially, the the of about our really we in mind customers a everybody, face working really about it well gated have

different us. play And completely so it's a for

So I perspective, my two think. from of these things are top the I mind, would say,

Elena Gomez

I to earlier, deals gives an think it can with that think headed. we just you're right. Sunshine, practice bunch kind And we're or, No, also working where customers. of us they wouldn't it have of which into us a Yes. known said Zendesk, create opportunity maybe that extend I otherwise they're is a bring because someone with around

Bradley Sills

on North all to on there's comments some Could see still Asia geographies folks subsidiaries. are some the It then Europe of And how it. if getting there. there? America you in a Or senior the and sounds outpace well Got like just and more that? goes thinking international clarify about on those we focus

Elena Gomez

But us, outside to our an frankly, that. of broadly grow. continuing and for opportunity on as I a view U.S. the we Half right? international continues advantage don't as the footprint obviously, to ball to tremendous be call and, want

is I So that, individually won't but for an opportunity it call us.

Operator

next Zukin question comes Alex Your from from line RBC. the of

Aleksandr Zukin

two quick for me. So maybe just ones

and RPO were and of those really some strong RPO saw growth. and both ahead current rates billings revenue you bookings So growth growth, current

Sunshine can growth you business a in maybe enterprise you also, you talk perspective Sell, XXXX the the for performance of see versus stack tailwinds Conversations? drivers about it, call the quarter -- stack the business you could biggest between, So the rank if if and and in Velocity from

Marc Cabi

Yes.

the transactional you to differential versus if rates I that think month-to-month, So may look month-to-month, that for comes the SMB at it growth be really part fact our RPO our current number. the were don't calculated in be customers that from of may billings, RPO participate in customers

businesses. are rates And model difference, grow our not opportunity there but those SMB business. is deals. differences so the X than in their the served bit huge has between obviously, faster rates where there to faster we differential accounts second a enterprise a territory part larger But to little Then And between question... it's growth and your our as are that there a by growth continue an larger of get our

Elena Gomez

products. rank Stack

Marc Cabi

products. demand point they to in big of around business XXXX opportunities products lots going customer have rank into about around our move Sunshine continuing are how my Stack capabilities incorporate learn Conversations models. then platform I the and core focus for of X From more view, of think us we ones. lots Sunshine and but messaging, I to think, of of are to upmarket, platform be their area messaging an Conversations,

Aleksandr Zukin

maybe Like, million, $XX on flow -- then gave from $XX a free a a And just in of maybe changes year? you it. kind of the on headwind Got cash magnitude the the in guidance contracting it what terms? quantification the on just Can for you financial that impact give terms us of some million is way of question.

Marc Cabi

lose collection. So days' XX it's -- worth I worth about at about will most, of days' we think that XX

should about to it. that's going the book you of how but have, your on think we I'm guys based of ask to business kind So math do you

Operator

the question comes next from Oppenheimer. Ikeda of Your Koji from line

Koji Ikeda

here I question Sunshine. had a on

referenceability I some of in building could become Sunshine of So you still among it year sounds the are that just access, platform demand little like customer for the prospects seeing and in a conversation, platform the that pent-up customers those full upmarket. today pieces platform is about bit customer the GA? X given the guess becoming last just are the to X early the two platform for pieces maybe maybe you are of the more And Sunshine talk and ago? the especially more versus a of waiting

Mikkel Svane

And here. you around to it's with it's us to our talk get to been everything new us, excited on doing say when point And it we've more in talk it's true about It's been think have a Like, you're this -- and a the remarkable we much under that in more the Sunshine are talk here. about why chapter amazing for something because an to very journey with last been touching March the a about these excited we on that's work I also But mentioned year. for year more customers lot I company. are year. Miami a just the for we sun been things. It's of transition at and over want we all

Marc Cabi

one said I of just at it's mid-market that want well Relate. you customers and our emphasis see to the us some moving you'll put upmarket. where as where also that serving comment It's examples on of

in So range size finding our mid-market companies are value really capabilities. the platform from

Operator

the from of comes Koenig question line Steve Securities. next Wedbush Your from

Steven Koenig

I'll add my as congratulations on well. the quarter

gauge become well us provider? CRM old your any Suite with can progress Suite. really I I'm that points or regards give to kind there Just first my realize of and the Sell, proof with metrics your this you service-first journey wondering, to don't to question, work and are evidence

Marc Cabi

with us. successful. I retention become method advocates of result, rates a efforts are Suite, their example that as customers. a have become customers, doing are think of the that why to sign seen customers And kind that strong of business our with they of omnichannel good our customer sticky adopted customers We've on

relevant making with that the better if customer a So point provide think good consumer, end these sure we outcome for that's experience, really are customer proof is me a them. in really I interested is adopting channels connected building their omnichannel, for all

And the point. I that's how proof kind would of so view

Mikkel Svane

think don't have points... kind of data created I Yes. we

Marc Cabi

data No points. Yes.

Steven Koenig

Okay.

maybe you For the lean just that going the more follow-up, in how spend us give -- specifics talking on was in Elena some to can you're investments about? ramp to

Elena Gomez

a think Miami around investment more of big but things And partners, really some hear outlined you'll mean I Sunshine innovate. all and about in broadly the that Yes. continuing on we our products on focus I it's but, in definitely to enterprise, Conversations, the in go-to-market. script, Sunshine it's speaking, investment

Operator

Your from Jeff from next Van question comes Rhee Craig-Hallum. line the of

Jeffrey Van Rhee

higher you think do going focus you consider keys improving end most it's upmarket that whether improving you the product relevance on I'm the how and position push. can move positioning, to maybe where -- of you're as be what upmarket? Just capabilities? the sort upmarket, little upmarket, competitive specifically market to it and And your and positioning really to sort the one, thinking your a are impactful the push specifically, prioritize of be things are partners/distribution, competitive whether features, of the of Just to

little you think just but emphasized Sunshine touched on upmarket. wasn't that I a

So specifically upmarket. asking I'm about just

Mikkel Svane

that execution we think services, So with of really and our lot partners, and a the here really first can system really, and I them of the Like, where cannot of put it's of a really, like, agility lot ease customers quick, things that that change cetera, our partner results product our with I a that help that front et of foremost, where want we of business them the lot well the need our our with do different they that, our get that can areas innovation, like help execute -- the that own et like, enterprise. like, we differentiation is results. quick, cetera, themselves continue where of use can to we different here. success help nothing to there's to solve our get say in we -- in in

an live they all still because customer important that's so expectations think where incredibly quickly. I changing our area customers are to in

of strong new boat platform, CIO, every replatforming today the arguments the tools accessible that enterprise that developer already there, kind is don't legacy for, So big these fast, that move for make modern forever. the want the for agility, modern other where slows change them like, are enterprise in down system Sunshine, of, all the platform, to like, the there, anchor want, the really all where that AWS lives use and they're take they the that natively lives moving, in maturity the of

we a of we're big of in part a of enterprise. are. that's part And our that's part So a DNA. big what big why the That's winning

Operator

Stifel. next from of line comes Tom Your question from Roderick the

Jeffrey Lane

Tom. Lane actually It's Parker in for

lot capabilities, it referenced in be of your or remarks, self-service a the in prepared your Gather. whether Answer So developments or Bot Guide you

the the about can those today. you solutions mid-market rates and tools really how customers amongst talk customers versus Just demand SMB wondering penetration compares self-service the if of and for enterprise today those

Mikkel Svane

et any have Bot anything Answer of I kind don't is to ourselves. that we don't product, incredibly versus mid-market points in like, are have SSD all adoption serviced, by of I be what doing. and successful and, do our look become self-service the want if tenets data these mind. is of core enterprise it our at cetera, things. Guide versus helping of It these have we it ourselves, product, I say things how capabilities, want ultimately we are of --

as a really experience in we business the well. as and And doing an citizen whole, about for self-service equal so is think important your your in like, how -- customer today, really, they're thinking critically

Marc Cabi

Support. slightly ago, revenues And X, down you coming of mean and revenue. and I where you or X some the -- have products that that's might that think to opportunity from revenues other Today, would filled broader our I the like of one launched Guide we've we that size Answer XXs. the told were Yes. XX% years our XX% above is Bot things of it of in have come

than result. So those it's growing that -- say a would product categories I are faster average as the

Operator

from next of Your Lowe UBS. line the comes from question Jennifer

Rakesh Kumar

newer reps' are sales seems Lowe. Jen trained the lot And is carry new specialist enough responsibility for core in products? product the more being to like Explore, Do think in are do Rakesh you Conversations also, that from Kumar for a have It are product products sitting Zendesk sales platform. to to there larger basket? some put This a Sell, a Sunshine a teams of you

Elena Gomez

Yes.

company we'll a extent consider different that. in gave common Marc a that and data And multiproduct lot in complex of more we we you're the level from still with because a training rates. use definitely about that evolved situations with invest comes enablement. we have every and So But where cases, a we use enablement, so expansion in year. we've specialist, how penetrate point And but to enablement sales a there's right our may we it's of right, that, to and ourselves as company, find single-product healthy can reps some believe not the cases,

Rakesh Kumar

And just the of Great. from core. there's greater a comes Marc products follow-up. and a have XXXX, the about In the then XX% monetization other talked platform. focus revenue I of around the on outside platform broadening of increasing the And

the material platform we XXXX? So any should from expect in contribution

Elena Gomez

the Miami. it's in about in platform monetize begin definitely, more -- so we talk considered in But will to Sunshine it here, guidance We'll our will XXXX.

Operator

the the There at turn I back call are no to presenters. time. further questions this

Marc Cabi

Well, you we'd call. our see for you QX to joining like on you in not, us If XXXX next Miami. see Hopefully, our in for we'll XX call we'll days. thank

Elena Gomez

Thanks.

Marc Cabi

you. Thank

Operator

today's conference concludes call. That

may disconnect. You now

Zendesk (ZEN) 6 Feb 202019 Q4 Earnings call transcript