GUIDANCE enterprise deals close in the second half of the year. Our first quarter revenue guidance reflects this seasonal trend. Our guidance for 2018 is based on the new revenue recognition standard As part of our infrastructure migration, we will continue to incur expenses for ASC 606. The new standard has a minimal impact on our revenue both Amazon Web Services and our co-located data centers while we host recognition, however the requirement to defer sales commissions under customers in both environments during the transition period. We expect to the new standard results in a benefit to our operating margins. The new incur up to approximately 100 basis points of additional depreciation and standard does not impact net cash from operating activities or free cash flow. related costs in each period while the migration continues. We expect to For comparability, we have provided restated historical financial statements finalize our migration plan in the first quarter and will disclose information under the new standard for the full year of 2016 and the full year and about the schedule of expense recognition on our first quarter earnings call. quarters of 2017 on our investor relations website. For the first quarter of 2018, we expect revenue to range between $125.0 We expect net cash from operating activities to be positive for the full year of and $127.0 million and we expect our GAAP operating loss to range between 2018, and for the first time, we are introducing annual guidance on free cash $33.0 and $35.0 million. We expect our non-GAAP operating loss for the flow. For the full year of 2018, we expect free cash flow between $25 million first quarter of 2018 to range between $3.0 and $5.0 million. Our GAAP and $30 million, representing a year over year growth of 51% at the midpoint. operating loss for the first quarter of 2018 is estimated to include share- This target regarding free cash flow includes cash used for purchases of based compensation and related expenses of approximately $28.7 million, property and equipment and internal-use software development costs. We amortization of purchased intangibles of approximately $0.7 million, and have not reconciled free cash flow guidance to net cash from operating acquisition-related expenses of $0.6 million. activities for this future period because we do not provide guidance on the reconciling items between net cash from operating activities and free cash For the full year of 2018, we expect revenue to range between $555.0 flow, as a result of the uncertainty regarding, and the potential variability and $565.0 million, representing growth between 29% and 31% year-over- of, these items. The actual amount of such reconciling items will have a year. We expect our GAAP operating loss for the full year of 2018 to range significant impact on our free cash flow and, accordingly, a reconciliation between $113.0 and $118.0 million, and we expect our non-GAAP operating of net cash from operating activities to free cash flow for the period is not income to range between $0.0 (breakeven) and $5.0 million. Our GAAP available without unreasonable effort. operating loss for the full year of 2018 is estimated to include share-based Finally, we estimate we will have approximately 103.8 million weighted compensation and related expenses of approximately $112.8 million, average shares outstanding for the first quarter of 2018 and 106.2 million amortization of purchased intangibles of approximately $2.7 million, and weighted average shares outstanding for the full year of 2018, each based acquisition-related expenses of $2.5 million. only on current shares outstanding and anticipated activity associated with Our full-year guidance reflects our confidence in maintaining a high growth equity incentive plans. rate in 2018. We note, however, that several factors affect our revenue recognition primarily in the first half of the year, as evidenced by our first quarter 2018 guidance. The first half of the year tends to be more heavily weighted toward our transactional business, whereas we see more Zendesk Shareholder Letter Q4 2017 - 14