Zendesk Q3 Loss Widens, Lifts Full Year Revenue View; Stock Up

(RTTNews) - Zendesk Inc. (ZEN), a software development company, Thursday reported a wider net loss for the third quarter, but lifted its revenue forecast for the year. The stock gained nearly 6 percent in the extended trade.

Net loss widened to $17.92 million or $0.25 per share from $4.77 million or $0.22 per share last year.

The latest results included $10.9 million in share-based compensation related expenses and $0.5 million of amortization of purchased intangibles.

Adjusted loss for the quarter was $0.09 per share, while it totaled $0.07 per share last year. On average, five analysts polled by Thomson Reuters expected the company to report a loss of $0.18 per share. Analysts' estimates typically exclude special items.

Third-quarter revenues jumped 76 percent to $33.91 million from $19.24 million last year. Analysts expected revenues of $31.25 million for the quarter.

Looking forward to the fourth quarter, the company expects revenues of $35 million to $37 million. Analysts currently estimate revenues of $34.57 million for the quarter.

For full year 2014, the company expects revenues of $123.5 million to $125.5 million, up from prior outlook of $118.0 million to $122.0 million. Analysts currently estimate revenues of $120.5 million.

ZEN climbed 4.4 percent on Thursday to $23.23, and gained 5.9 percent in the extended trade.