Zendesk stock falls after software company reports wider GAAP loss
Shares of Zendesk Inc. fell more than 4% in the extended session Tuesday after the software company reported adjusted first-quarter profit and sales above expectations, but GAAP losses were wider than expected. Zendesk said it lost $44.7 million, or 41 cents a share, in the quarter, compared with a loss of 28 cents a share in the year-ago period. Adjusted for one-time items, Zendesk earned $5.1 million, or 4 cents a share, in the quarter. Revenue rose 40% to $181.5 million. Analysts polled by FactSet had expected Zendesk to report adjusted profit of 3 cents a share on sales of $179.5 million. The quarter's GAAP loss was seen at 38 cents a share. Zendesk said it expects revenue between $191 million and $193 million for the second quarter, and of $802 million to $810 million for the year. Zendesk shares ended the regular trading day up 0.3%.
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