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Zendesk (symbol: ZEN) is a leading customer service software company that provides innovative support and sales products designed to enhance customer relationships. The company's core belief is that every great customer relationship begins with a conversation. Zendesk’s solutions aim to bring powerful and innovative customer experiences within reach for companies of all sizes and across various industries.
Serving over 170,000 customers globally and supporting more than 30 languages, Zendesk has a significant presence in the industry. The company's product suite includes advanced tools for customer support, sales, and workforce engagement management (WEM). A recent notable achievement is the acquisition of Klaus, an AI-powered quality management platform. This acquisition, announced on January 8, 2024, reflects Zendesk's commitment to leveraging AI to drive improvements in customer service. Klaus will enable Zendesk customers to deliver consistent, high-quality service across all channels, from human agents to digital bots.
Zendesk's Chief Technology Officer, Adrian McDermott, highlights that AI-powered quality assurance is essential in today's fast-paced customer service environment. By integrating Klaus' capabilities, Zendesk aims to help businesses identify and address gaps in their service operations, ensuring that both digital and human agents provide personalized and empathetic support.
Founded in Copenhagen, Denmark, Zendesk has grown to operate in over 20 countries, with a mission to simplify business complexities and foster meaningful connections between companies and their customers. The company's recent strategic moves, such as acquiring Tymeshift in June 2023 and now Klaus, underscore its dedication to expanding its WEM solutions and driving customer satisfaction through advanced technology.
Zendesk has announced a definitive agreement to acquire Local Measure, a leading CCaaS and advanced voice solutions provider. The acquisition aims to enhance Zendesk's AI voice capabilities and strengthen its integration with Amazon Connect, AWS's cloud contact center solution.
Local Measure's technology specializes in high-volume service environments, offering sophisticated call routing, AI-powered automation, unified inbound service and outbound sales capabilities, and real-time service quality insights. The acquisition will accelerate Zendesk's expansion into complex service environments and position it as a key provider of AI-driven service solutions.
The deal reinforces Zendesk's collaboration with AWS and is expected to close in May 2025, subject to Local Measure's shareholder approval and regulatory and Australian Court approvals.
Zendesk's 2025 Customer Experience Trends Report reveals that consumers now demand more human-like and personalized AI interactions. Based on insights from over 10,000 global respondents, the report identifies five key trends shaping customer service future. Companies embracing AI ('CX Trendsetters') show 33% higher customer acquisition, 22% higher retention, and 49% higher cross-sell revenue.
The trends include: AI copilots enhancing agent efficiency, human-like AI agents building trust, personal AI assistants becoming integral, Voice AI gaining prominence for complex issues, and personalization driving loyalty. Notably, 63% of consumers would switch providers after one bad experience, highlighting the importance of AI-driven personalization in customer service.
Zendesk has launched its AI Dynamic Pricing Plan, offering flexible pricing for AI and automation in customer service. The new model allows companies to adjust investments between human and AI agents based on evolving needs. This first-of-its-kind approach follows Zendesk's successful Outcome-Based Pricing launch, where businesses pay only for AI-delivered results.
The plan enables companies to optimize spending across different pricing models, including outcome-based and seat-based pricing, ensuring strong ROI on AI investments. CEO Tom Eggemeier predicts that 100% of service interactions will involve AI in the coming years, emphasizing the importance of flexible adoption strategies.
Sigma has appointed Christina Liu as Chief Financial Officer (CFO) and Ali Harmer as General Counsel to support its high-velocity business growth. Liu brings 25 years of finance expertise, having previously worked at Confluent (NASDAQ: CFLT) and Zendesk (NYSE: ZEN), where she played important roles in their financial scaling and IPO processes. Liu is also committed to diversity and inclusion, mentoring in the Asian American community. Harmer, formerly of Coda Law Group, LLP, brings over a decade of legal experience in technology transactions. She will lead Sigma's legal strategy and advise on business development and international expansion. This leadership enhancement comes amid rising customer demand and technological advancements in the data analytics industry.
Zendesk, Inc. (NYSE: ZEN) reported a 20% year-over-year revenue increase for Q3 2022, totaling $416.9 million. Despite this growth, the company faced a GAAP operating loss of $55.4 million and a net loss of $59.1 million, with a net loss per share of $0.48. Non-GAAP results showed a net income of $39.4 million or $0.32 per share. The reported losses included $10.2 million in restructuring expenses and $6.6 million in merger-related costs. Due to a pending acquisition, Zendesk will not provide financial guidance for 2022.
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