ZEN – Markets are pricing in expectations for Uniform ROA to expand, but management may be concerned about partnerships, capabilities, and growth

• Zendesk, Inc. (ZEN:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 114.8x Uniform P/E, implying bullish expectations for the firm, but management may be concerned about their partnerships, product capabilities, and revenue growth
  
  

• Specifically, management may be exaggerating their ability to cross the $1bn revenue mark this year, build on Zendesk capabilities to create better customer experiences, and establish self-service and Guide products as core business tenets. Additionally, they may be concerned about their channel partner relationships, Systems Integration Services investments, and the impact of omnichannel adoptions on their customer retention rates