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Amid Rejected Takeover Bid and Challenges with the Momentive Acquisition, Zendesk Reports Solid Growth
Customer service software company, Zendesk, disclosed that they had rejected an unsolicited acquisition offer from a group of private equity firms that it says "significantly undervalues the Company and is not in the best interests of the Company and its shareholders."
At the same time, two shareholder advisory firms urged investors to reject Zendesk's acquisition of Momentive Global, parent company to SurveyMonkey.
Amid this news, the company reported its Q4 and annual earnings, showing 32% year-over-year growth for Q4 and 30% growth for its 2021 fiscal year.
In its shareholder letter, the company credited its efforts in the enterprise market for its growth.
From its shareholder letter:
"The enterprise market has been a core focus for Zendesk for the last few years and we are seeing that focus and go-to-market strategy pay off. Our customers in the enterprise market not only bring in higher ARR, but they sign on for longer engagements, expand at a higher rate, and have significantly higher retention rates. Our customer accounts that are generating >$250k ARR now account for 38% of our total ARR, a significant improvement from the 32% of our ARR they accounted for at the end of 2020."