Shares of Zendesk (NYSE:ZEN) jumped today after the company beat Wall Street's earnings and revenue estimates in the third quarter.
The tech stock popped by as much as 10.6% today and was up by 3.8% as of 12:20 p.m. EDT.
Zendesk reported adjusted diluted earnings of $0.17 per share in the quarter, which far outpaced analysts' consensus estimate of $0.11 per share. Additionally, the company's third-quarter revenue of $261.9 million beat Wall Street's estimate of $253.7 million.
The company's management was optimistic about the third-quarter result and Zendesk's future.
"We saw signs that the initial shock of the COVID-19 pandemic is behind us as demand for our solutions demonstrated strong growth and as churn and contraction rates improved significantly, moving closer to historical levels," the company said in a statement.
Zendesk also achieved an important milestone in the quarter by "crossing a billion-dollar annual revenue run rate" and said it's "on a clear trajectory to reach our billion dollar annual revenue goal in 2020."
Today's share price jump puts Zendesk's stock up 43.4% since the beginning of this year and investors likely have more to look forward to. Zendesk's revenue guidance for the fourth quarter is in the range of $274 million to $279 million, which would be a year-over-year increase of 20% at the midpoint. Additionally, the company guided for full-year sales in the range of $1.02 billion to $1.025 billion, up from $816.4 million in 2019.