Looking ahead to the future
Published April 25, 2022
The future of building successful businesses is rooted in how deeply they understand their customers as well as how quickly they can keep up with and exceed their expectations. With actionable insights, businesses can be more agile and respond faster to customer needs — generating better service and creating better products along the way. The end result is Zendesk’s vision of the world: a global economy powered by lifelong customers.
We planned to acquire Momentive as a way to accelerate our ability to deliver the future of customer intelligence. While we will not be moving forward with that acquisition, we remain as committed as ever to helping our customers get more value out of their data.
We’ll continue developing products that enable our customers to listen, understand and then improve every interaction along their customer’s journey. This year and beyond, we’re focused on these key areas:
- Over 38% of our book of business at the end of 2021 came from customer accounts with more than $250K in annual recurring revenue. We’ll continue to accelerate our growth in the enterprise by investing in the top capabilities our customers and prospects request, expanding our partner and alliances ecosystem, and continuing to reinforce Zendesk’s value propositions of lower total cost of ownership and fast time-to-value.
- Less than a year after launch, Zendesk Suite already exceeds $500 million in annual recurring revenue as of the end of 2021. Suite is everything a business needs in one powerful package that’s easy to use and offers one unified view of a customer. We’ll continue to invest in the core differentiators of the Zendesk product, including messaging experiences, agent and admin productivity capabilities, CX analytics and reporting, customizable workflow and platform components.
- We believe true understanding comes from taking billions of customer interactions and transforming it all into actionable insights for our customers. We remain as committed as ever to creating value for customers by empowering them with rich, multi-dimensional customer intelligence capabilities and insights.
There’s no question customers are rightfully demanding more from the companies and brands with whom they spend their time and money. The Zendesk platform is already a cornerstone for many businesses worldwide, and I am extraordinarily proud of our growth — that’s why we saw accelerated revenue growth of 30% to $1.34 billion in revenue in 2021 and have a clear path to generating $3.4 billion in revenue by 2025. We will continue to play a critical role in transforming these relationships, just as we have for the last 15 years. We are operating from a strong foundation and driven by a mission to simplify complexity so it’s easier for companies and customers to connect. I am so excited for what the future holds.
Please note that this post contains forward-looking statements, including, among other things, statements regarding Zendesk’s future financial performance, its continued investment to grow its business, and progress toward its long-term financial objectives. 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. The forward-looking statements contained in this post are subject to risks, uncertainties, and factors, including those more fully described in Zendesk’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021. 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.