Zendesk Acquires the Company Behind Base to Deliver Software Designed for Salespeople

Zendesk Acquires the Company Behind Base to Deliver Software Designed for Salespeople

SAN FRANCISCO — September 10, 2018 — Zendesk, Inc. (NYSE: ZEN) today announced it has acquired FutureSimple Inc., the company behind Base. Base is known for building modern, easy-to-use sales force automation software designed to help salespeople do their jobs more effectively. Zendesk will invest in Base’s ongoing market growth and product development, focusing on existing customers and delivering products for smaller, fast-growing sales teams, expanding to larger organizations over time.

“Base is a natural fit with Zendesk because we both share a passion for designing beautiful products built for the people who actually use them,” said Mikkel Svane, founder and CEO, Zendesk. “We want to do for sales what Zendesk has already done for customer service: give salespeople tools built around them and the customers they serve.”

Founded in 2009, Base is a modern sales solution that provides integrated tools for communication, lead scoring, reporting and more. The company is widely recognized by customers and industry analysts for its leading mobile app and a user-friendly experience. Gartner has positioned Base as a Visionary in the July 2018 Magic Quadrant for Sales Force Automation.

Base and Zendesk last year launched an integration between their products, bringing together support and sales information about customers. Among the companies using it is home loan education platform Mortgage Coach. Its director of IT and QA support services called the integration seamless and said it ultimately saved the team countless hours of data duplication.

While legacy sales force automation tools are designed around rigid management processes that discourage salespeople from using them, Base gives sales teams the information and context they need to be effective and successful with prospects and customers. The result is a tool that helps salespeople work and sell more easily.

“Legacy sales tools were never built for the people actually using them. Our core philosophy in building Base, was to create a world-class experience for sales professionals to help them close more deals,” said Uzi Shmilovici, founder and CEO, Base. “Just like Zendesk set out to improve the customer experience, we set out to dramatically improve the sales experience for 30 million sales professionals worldwide. We are thrilled to be joining Zendesk in building the future of customer experience software.”

Currently serving over 5,000 customers globally across industries, Base has offices in San Francisco and Krakow, Poland. All of Base’s customers will continue to receive support and services, and the Base team will all be offered roles at Zendesk. Matt Price, formerly Zendesk’s senior vice president, product portfolio, will lead a team dedicated to growing Base across product and go-to-market.

“The Base team is perfectly suited to join Zendesk in our mission to deliver helpful, easy to use, flexible and scalable products focused on the customer,” said Matt Price, senior vice president and general manager, Base. “Together we will build deeper integrations with our products so sales and service can more easily collaborate.”

Terms of the transaction were not disclosed. For the year ending December 31, 2018, the acquisition is not estimated to have a significant impact on Zendesk’s revenue and is expected to be dilutive to GAAP and Non-GAAP operating margin and earnings per share. These estimates reflect a reduction relating to fair value adjustments to acquired deferred revenue. Zendesk will provide further detail on the actual and expected impact of the acquisition on its results of operations for the year ending December 31, 2018 when it releases financial results for the quarter ending September 30, 2018.

For more information about Zendesk and Base, check out the Zendesk blog.

About Zendesk

The best customer experiences are built with Zendesk. Zendesk’s powerful and flexible customer service and engagement platform scales to meet the needs of any business, from startups and small businesses to growth companies and enterprises. Zendesk serves businesses across a multitude of industries, with more than 125,000 paid customer accounts offering service and support in more than 30 languages. Headquartered in San Francisco, Zendesk operates worldwide with 15 offices in North America, Europe, Asia, Australia, and South America. Learn more at www.zendesk.com.

Forward-Looking Statements

This press release contains forward-looking statements, including, among other things, statements regarding Zendesk’s future financial performance, its investment in existing products or business lines and new or acquired products and business lines to grow its business, and progress towards its long-term financial objectives. The words such as “may,” “should,” “will,” “believe,” “expect,” “anticipate,” “target,” “project,” and similar phrases that denote future expectation or intent regarding Zendesk’s financial results, operations, and other matters are intended to identify forward-looking statements. You should not rely upon forward-looking statements as predictions of future events.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause Zendesk’s actual results, performance, or achievements to differ materially, including (i) adverse changes in general economic or market conditions; (ii) Zendesk’s ability to adapt its products to changing market dynamics and customer preferences or achieve increased market acceptance of its products; (iii) Zendesk’s ability to effectively expand its sales capabilities, (iv) Zendesk’s ability to effectively market and sell its products to larger enterprises, (v) Zendesk’s expectation that the future growth rate of its revenues will decline, and that, as its costs increase, Zendesk may not be able to generate sufficient revenues to achieve or sustain profitability; (vi) the market in which Zendesk operates is intensely competitive, and Zendesk may not compete effectively; (vii) the development of the market for software as a service business software applications; (viii) Zendesk’s ability to introduce and market new products and to support its products on a shared services platform; (ix) Zendesk’s ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions, including without limitation the acquisition of Base; (x) Zendesk’s ability to effectively manage its growth and organizational change; (xi) breaches in Zendesk’s security measures or unauthorized access to its customers’ data; (xii) service interruptions or performance problems associated with Zendesk’s technology and infrastructure; (xiii) real or perceived errors, failures, or bugs in its products; and (xiv) Zendesk’s substantial reliance on its customers renewing their subscriptions and purchasing additional subscriptions.

The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in Zendesk’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that Zendesk makes with the Securities and Exchange Commission from time to time, including its Quarterly Report on Form 10-Q for the quarter ending September 30, 2018.

Forward-looking statements represent Zendesk’s management’s beliefs and assumptions only as of the date such statements are made. Zendesk undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

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