Zendesk Projects Slowing Sales Growth Amid Economic Downturn
- Software maker counts many small businesses as customers
- Company pulls annual revenue forecast on pandemic uncertainty
Zendesk headquarters in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Zendesk Inc. withdrew its annual sales forecast and projected slowing revenue growth in the second quarter, signaling that the coronavirus pandemic has trimmed demand for customer-service software.
Revenue will be $237 million to $243 million in the period ending June 30, which would be as much as a 25% increase from a year earlier, the San Francisco-based company said Thursday in a statement. Analysts had expected $245 million, according to data compiled by Bloomberg. Zendesk projected operating income, excluding some expenses, of $8 million to $12 million.