Online customer service company Zendesk today reported earnings for its first financial quarter of 2015. The company reported revenue of $42.2 million, up 68 percent from the year-ago quarter. In the last quarter, the company reported $38.5 million in revenue and earnings per share of $0.11 in the last quarter.
GAAP net loss in the current quarter, however, was $19.2 million, for a GAAP net loss of $0.25 per share. Non-GAAP net loss was $7.8 million, but this excludes $10.9 million in share-based compensation and a number of smaller line items.
Wall Street expected $40.55 million in revenue and a $0.13 loss per share. Zendesk had already predicted that it would continue to lose money in 2015, so today’s announcement won’t come as a shock to investors. The number of analysts who cover Zendesk is relatively low, but the company clearly beat their expectations.
“We started 2015 with solid financial results. We expanded our geographic reach and landed a growing number of small and medium-sized business and enterprise customers with a wide variety of use cases, reinforcing our competitive advantage,” said Zendesk founder and CEO Mikkel Svane in a canned statement today. “Our ‘low-touch’ online model exceeded our expectations, affirming the continued health of our core business.”
For the next quarter, Zendesk expects revenue around $45 million to $47 million and a non-GAAP operating loss of between $8.5 million and $9.5 million.
Zendesk’s stock already took quite a beating today and is now trading down 7.8 percent from its opening price today.