FINANCIAL MEASURES AND CASH FLOW GAAP operating loss for the fourth quarter of 2017 was $28.5 million compared to GAAP operating loss for the third quarter of 2017 of $28.4 We made solid progress on operating fundamentals in 2017. Our strong million. GAAP operating loss for the fourth quarter of 2016 was $25.1 million. revenue growth and continued focus on improving operating margins Non-GAAP operating loss for the fourth quarter of 2017 was $2.4 million, have been a key focus of management. In 2017, we achieved GAAP and compared to non-GAAP operating loss for the third quarter of 2017 of $3.3 non-GAAP operating margin expansion based on continued improvements million. Non-GAAP operating loss for the fourth quarter of 2016 was across all our cost categories, despite the impact on our gross margin $4.4 million. incurred by our recent decision to move our infrastructure operations to GAAP operating margin improvement is attributed to overall sales force cloud infrastructure from our current co-located data centers. Our focus in productivity gains and G&A operational scaling. GAAP operating margin for 2018 and beyond is to continue to deliver high revenue growth and further the fourth quarter of 2017 improved to -23.1% from -25.2% in the third quarter scale our business as measured by expanding GAAP and non-GAAP of 2017. GAAP operating margin was -28.4% in the fourth quarter of 2016. operating margins. Non-GAAP operating margin improved to -2.0% in the fourth quarter of 2017 Our revenue growth and improvements in margins also helped drive positive from -2.9% in the third quarter of 2017. Non-GAAP operating margin was results in net cash from operating activities and results for free cash flow. In -5.0% in the fourth quarter of 2016. 2017, we achieved positive net cash from operating activties and free cash GAAP net loss for the fourth quarter of 2017 was $26.6 million or $0.26 per flow in each quarter and for the year. share compared to GAAP net loss of $27.7 million or $0.28 per share for the Fourth Quarter Results third quarter of 2017. GAAP net loss was $24.5 million or $0.26 per share for Our fourth quarter and full-year 2017 results below are based on the revenue the fourth quarter of 2016. recognition standard ASC 605. Our guidance for 2018 will be based on the Non-GAAP net loss for the fourth quarter of 2017 was $0.5 million or $0.01 new revenue recognition standard ASC 606, as discussed further in that per share compared to non-GAAP net loss of $2.5 million or $0.02 per share section. for the third quarter of 2017. Non-GAAP net loss was $3.8 million or $0.04 Revenue was $123.4 million for the fourth quarter of 2017, up 39% year-over- per share for the fourth quarter of 2016. Weighted average shares used to year compared to $88.6 million in the fourth quarter of 2016. GAAP gross compute both GAAP and non-GAAP net loss per share for the fourth quarter margin increased quarter over quarter to 71.7% in the fourth quarter of 2017, of 2017 was 102.0 million. from 70.1% in the third quarter of 2017. GAAP gross margin in the fourth Non-GAAP results for the fourth quarter of 2017 exclude $24.7 million in quarter of 2016 was 71.1%. Non-GAAP gross margin increased quarter over share-based compensation and related expenses (including $2.0 million quarter to 74.5% in the fourth quarter of 2017 compared to 73.5% in the third of employer tax related to employee stock transactions and $0.4 million quarter of 2017. Non-GAAP gross margin in the fourth quarter of 2016 was of amortization of share-based compensation capitalized in internal-use 74.8%. Both GAAP and non-GAAP gross margin continues to be impacted by software), $0.7 million of amortization of purchased intangibles, and our dual infrastructure deployments. $0.7 million of acquisition-related expenses. Non-GAAP results for the third quarter of 2017 exclude $23.7 million in share-based compensation and related expenses (including $0.7 million of employer tax related to Zendesk Shareholder Letter Q4 2017 - 12