+ Watch ZEN
on My Watchlist
FInd my thesis here: http://www.fool.com/investing/general/2014/07/07/3-reasons-to-give-zendesk-stock-a-second-look.aspx
I am uncertain about the full span of the business model. However, a tech startup with increasing revenue and decreasing overhead is a miracle worth looking at. Clicking outperform now, probably putting my own money in the mix within a few months of observation.
Have to go along with All Star skepticism about a stock this newly public.
This is a tough one to pick at this stage because some of the critical numbers for a SaaS business don't seem to be particularly available. yetbut a couple links to details off the S-1 filing:http://davidcummings.org/2014/04/10/notes-from-the-zendesk-ipo-filing/http://kellblog.com/2014/04/20/a-look-at-the-zendesk-s-1-ipo/In the lack of hard data on cohort analysis, CAC, churn rate and LTV of some of their clients. I went looking for some anecdotal information. Matrix partners, as one of the early investors has access to some of the real numbers, and while they don't come out and say what the growth in LTV is for ZEN he does make some very interesting comments in some blog posts regarding the growth of recurring revenue for Zendesk Clients.I realize this post is a year old but it points to some very interesting and unique trends inside Zendesk that many SaaS companies aspire to."The example graph below looks at how MRR evolves over time for each cohort. This particular example illustrates how the graph would look if there is very strong negative churn. As you can see, the increase in revenue from the customers that are still using the service is easily outpacing the lost revenue from churned customers. It is pretty rare to see things look this good, but it is the ideal situation that we are looking for. For those wondering if this can be achieved, one company in our portfolio, Zendesk, that has numbers that are even better than those shown in the example below."- http://www.forentrepreneurs.com/saas-metrics-2/
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