Zendesk Poised for its IPO Leap
Preparing for an initial public offering (IPO) is no easy feat. If the incredible amount of paperwork wasn’t enough to stress about, opening the company’s financial books to the public is sure to raise the blood pressure a few notches.
Zendesk Inc., a San Francisco based software startup company, is among the newest companies planning to file an IPO. Even though the young company, launched in 2007, has posted losses the last two years ($22.6 million in 2013 and $24.4 million in 2012) they are seeking an IPO market value of up to $700 million. The company plans to sell 11.1 million shares at a price point of $8 to $10 each which would allow them to raise up to $111.1 million.
Even though the company has posted overall losses the last two years, they have had multiple bright spots along the way. One such bright spot is that in 2013 Zendesk posted $72 million in revenue, up 88 percent from the prior year. Another bright spot that potential investors should be comforted by is that Zendesk’s customer base has grown from 1,000 in 2009 to 40,000 in 2014.
Zendesk’s offers a wide variety of service packages which range from $1 per month to $195 per month for each employee that uses the software. Each package comes with a unique set of features (the most expensive of course contains the most features).
Zendesk shares will be available through the New York Stock Exchange with the ticker symbol “ZEN.”