Cloud-based customer solution provider Zendesk seems winning in its first day at the New York Stock Exchange. The stock price which was initially set at $9 rose above $11 in just an hour following the company’s debut at NYSE.
Having partly boosted by the recent acquisition of Singaporean software developer Zopim , Zendesk’s market value is now hovering around $770 million at $11 stock price. At the time of writing, the price was running above $12,50.
Zendesk was founded in Denmark in 2007 and later moved its global headquarters to San Francisco, and grew quickly to become a leading provider of CRM software solutions focusing mostly on small and medium size businesses. It has now over 40,000 customer accounts from 140 countries. The company said in its declaration for IPO previously that revenues have almost doubled each year since 2011, to $72 million in 2013. Net losses meaning the accumulated deficit reached $64.5 million by December 31, 2013. Net loss for Q1 2014 was around $10.3 million.
What helped Zendesk stocks to soar was its aggressive growth target and the acquisition of Zopim who provides the chat-based customer contact solutions, to improve its technological capabilities. Zendesk plans to integrate Zopim chat with its customer service platform in the upcoming months to offer live and proactive chat for its customers.