(continued...) Three Months Ended Year Ended December 31, December 31, Non-GAAP results 2017 2016 2017 2016 (In thousands, except per Reconciliation of net loss per share, basic and diluted share data) GAAP net loss per share, basic and diluted $(0.26) $(0.26) $(1.11) $(1.11) Non-GAAP adjustments to net loss 0.25 0.22 0.98 0.89 The following table shows Non-GAAP net loss per share, basic and diluted $(0.01) $(0.04) $(0.13) $(0.22) Zendesk’s GAAP results Weighted-average shares used to compute reconciled to non-GAAP net loss per share, basic and diluted 102,044 95,793 99,918 93,161 results included in this letter. Computation of free cash flow Net cash provided by operating activities $17,356 $20,528 $42,095 $24,522 Less: purchases of property and equipment (3,062) (8,153) (16,396) (20,647) Less: internal-use software development costs (2,284) (1,997) (7,521) (6,310) Free cash flow $12,010 $10,378 $18,178 $(2,435) Zendesk Shareholder Letter Q4 2017 - 20

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