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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.

Zendesk headquarters in San Francisco, California.

Photographer: David Paul Morris/Bloomberg
Updated on

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.