Eric Li's Contributor Page
Eric Li is a student from Southern Methodist University triple majoring in Finance, Economics, and Mathematics.
Contributor Number: 121
Contributor Number: 121
Eric's Articles
Solid Quarter, Mixed Guidance; Expect a Strong 2H to the Year
Zendesk Inc. (NYSE: ZEN) posted a solid quarter with its 1Q17 earnings release: The company announced total revenues of $93.0M, representing 36% y/y growth, billings of $100.6M, representing 34% y/y growth, and GAAP EPS of -$0.05 beat estimates by $0.01. The company announced the launch of a new product called Guide, which is an advanced self-service help center. They also announced the acquisition of Outbound, which is a company that works to provide better message targeting and timing. This acquisition should help Zendesk expand its Connect product, which previously only had the capabilities of customer segmentation and push notification engagement services...Zendesk 1Q17 Review
Zendesk Inc. (NYSE: ZEN) posted a solid quarter with its 1Q17 earnings release: The company announced total revenues of $93.0M, representing 36% y/y growth, billings of $100.6M, representing 34% y/y growth, and GAAP EPS of -$0.05 beat estimates by $0.01. The company announced the launch of a new product called Guide, which is an advanced self-service help center. They also announced the acquisition of Outbound, which is a company that works to provide better message targeting and timing. This acquisition should help Zendesk expand its Connect product, which previously only had the capabilities of customer segmentation and push notification engagement services...Zendesk 1Q17 Review
Zendesk Coverage Initiation and 1Q17 Preview
Zendesk is a software-as-a-service (SaaS) company that provides a customer service platform in the cloud. A note about SaaS companies is that they get a recurring revenue stream. Zendesk is a market leader for providing customer service software to small-to-medium-businesses (SMB). Note that a concentration of SMB customers makes Zendesk more prone to churn in comparison with companies with a concentration of Enterprise customers. Zendesk believes that every business, no matter how large, deserves to be able to provide great customer service cloud platform to their customers...Click to Continue Reading
Zendesk is a software-as-a-service (SaaS) company that provides a customer service platform in the cloud. A note about SaaS companies is that they get a recurring revenue stream. Zendesk is a market leader for providing customer service software to small-to-medium-businesses (SMB). Note that a concentration of SMB customers makes Zendesk more prone to churn in comparison with companies with a concentration of Enterprise customers. Zendesk believes that every business, no matter how large, deserves to be able to provide great customer service cloud platform to their customers...Click to Continue Reading
Eric's Models
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Zendesk Inc (NYSE:ZEN)
Latest Update: May 5, 2017 Model Type: Tier 2, Consensus-based model. Financial Modeling Approach: This model model uses revenue growth rates and ratio analysis to project future earnings. |
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Zendesk Inc (NYSE:ZEN)
Latest Update: April 4, 2017 Model Type: Tier 1, DCF Model. Financial Modeling Approach: This model projects free cash flow driven by assumptions for revenue growth rates, EBIT margin, and changes in working capital, and discounts the cash flows using a CAPM derived cost of equity within the company's estimated WACC. |
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Netflix Inc (NASDAQ:NFLX)
Latest Update: November 24, 2016 View on Netflix: Neutral Summary of Model Estimates: I estimate member growth for the fourth quarter will be in-line with management's guidance. For 2017, I estimate revenue will grow nearly 29% year-over-year as growth in the International Streaming Segment accelerates. My model assumes the company’s operating margin will increase to approximately 8% in 2017 from 6% in 2016 as marketing costs are spread across a higher revenue base. The resulting GAAP EPS for 2017 is $0.96 assuming a stable increase in shares outstanding. |
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