Zendesk, Inc. (NYSE:ZEN) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 05:00 pm ET


Zendesk, Inc. (NYSE:ZEN) Q2 2020 Earnings Conference Call - Final Transcript


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Marc Cabi

Okay. Good afternoon, everybody, and welcome to our Second Quarter 2020 Earnings Call. We're using a new technology today, so bear with us. I'm hoping we have this all set.

We're pleased to report our results. Joining me on the call today are Mikkel, our Co-Founder, CEO and Chair of the Board; and Elena, our Chief Financial Officer. We're all in video today, so that should be interesting.

During the course of today's call, we'll make forward-looking statements, such as statements regarding our future financial performance, product development, growth prospects, ability to attract and retain customers and ability to compete effectively. The assumptions, risks and factors that could affect these results are contained in our earnings press release and in the Risk Factors section of our prior and subsequent filings with the Securities and Exchange Commission, including our annual reports on Form 10-K for the year ended December 31, 2019, and our upcoming quarterly report on Form 10-Q for the quarter ended June 30, 2020.

We undertake no obligation to update these statements after today's presentation or to conform these statements to actual results or to change in our -- or changes in our expectations, except as required by law. Please refer to today's earnings release for more information regarding forward-looking statements.

During this call, we will present both GAAP and non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our GAAP financial information. You can find additional disclosures regarding these non-GAAP financial measures, including reconciliations with comparable GAAP financial measures, in today's earnings press release and shareholder letter, and for non-GAAP financial measures for prior periods in the earnings press releases for such prior periods. Those are all available on our investor website.

With that intro, I'll turn the call over to Mikkel.

Mikkel Svane

Thanks so much, Marc. You are a screen natural. Hi, everyone, and welcome to our earnings call. We're really excited to be doing this by Zoom. The people at Zoom, of course, are good friends, but it's also -- this is how we spend most of our days. So it's great to be able to invite everybody into our world here.

We are pleased with our second quarter results as we, of course, managed through a very uncertain time. Our confidence increased during the quarter as we saw several of our regions and segments of our business actually performed really well. But of course, we continue to see segments of our customer face real pandemic-related challenges.

We in our business saw the greatest headwinds amongst our mid-sized customers, who slowed expansions below historical patterns. This was maybe not surprising, and we saw it globally, although mostly in our largest region of the Americas. We were encouraged, though, by the very healthy growth in new business deals. Our performance with our large customers was as good as we expected at the beginning of the year before COVID. And we also saw real strength with SMB