employee stock transactions and $0.5 million Full-Year 2017 Results Non-GAAP results for 2017 exclude $91.6 million of amortization of share-based compensation in share-based compensation and related capitalized in internal-use software), $1.0 million Revenue was $430.5 million for the full year of expenses (including $4.8 million of employer of amortization of purchased intangibles, and 2017, up 38% year-over-year compared to $312.0 tax related to employee stock transactions $0.5 million in acquisition-related expenses. million for 2016. GAAP gross margin increased and $1.8 million of amortization of share- Non-GAAP results for the fourth quarter of to 70.4% in 2017 compared to 69.9% in 2016. based compensation capitalized in internal- 2016 exclude $19.8 million in share-based Non-GAAP gross margin decreased slightly to use software), $3.7 million of amortization compensation and related expenses (including 73.8% in 2017 compared to 73.9% in 2016. As of purchased intangibles, and $2.2 million $1.8 million of employer tax related to mentioned above, our gross margins in 2017 of acquisition-related expenses. Non-GAAP employee stock transactions and $0.6 million were negatively impacted by the migration of our results for 2016 exclude $79.5 million in share- of amortization of share-based compensation infrastructure operations to cloud infrastructure based compensation and related expenses capitalized in internal-use software), and $0.9 from our current co-located data centers. (including $3.9 million of employer tax related million of amortization of purchased intangibles. GAAP operating loss for 2017 was $114.6 million to employee stock transactions and $1.8 million During the fourth quarter of 2017, net cash from compared to GAAP operating loss for 2016 of of amortization of share-based compensation operating activities was $17.4 million, and we $104.3 million. Non-GAAP operating loss for capitalized in internal-use software), and $3.8 achieved positive free cash flow of $12.0 million. 2017 was $17.1 million, compared to non-GAAP million of amortization of purchased intangibles. We ended the fourth quarter of 2017 with $109.4 operating loss for 2016 of $21.1 million. For the full year of 2017, net cash from operating million of cash and equivalents, and we had an GAAP operating margin in 2017 improved to activities was $42.1 million, and we achieved additional $137.6 million of short-term marketable -26.6% from -33.4% in 2016. Non-GAAP operating positive free cash flow of $18.2 million. securities and $97.4 million of long-term margin improved to -4.0% in 2017 from -6.8% in marketable securities. 2016. GAAP net loss in 2017 was $110.6 million or $1.11 per share compared to GAAP net loss of $103.8 million or $1.11 per share for 2016. Non-GAAP net loss in 2017 was $13.1 million or $0.13 per share compared to non-GAAP net loss of $20.5 million or $0.22 per share in 2016. Weighted average shares used to compute both GAAP and non-GAAP net loss per share for 2017 was 99.9 million. Zendesk Shareholder Letter Q4 2017 - 13