Our fourth quarter and full-year results highlight our upmarket progress. We For the fourth quarter of 2017, we achieved revenue of $123.4 million, with added many new large businesses as customers, while expanding with many an annual growth rate of 39%. For the full year, we ended 2017 with $430.5 more existing enterprise customers during the quarter. We saw a significant million in revenue, with an annual growth rate of 38%. Looking forward to increase in our metric tracking the percentage of Zendesk Support MRR 2018, we project revenue to be in the range of $555 million to $565 million. coming from customers with 100 or more Support agents—ending 2017 at Our operating results continue to keep us on track to deliver both year-over- 38% compared to 34% a year earlier. Additionally, our portfolio of customer year GAAP and non-GAAP operating margin improvement, and increased success stories expanded in both number and variety throughout 2017, net cash from operating activities and free cash flow, consistent with the showcasing our move into new use cases and our traction in key industry goals that we established in prior years. segments. Fourth quarter and full fiscal year 2017 financial summary (in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, GAAP Results 2017 2016 2017 2016 Revenue $ 123,426 $ 88,623 $ 430,492 $ 311,999 Gross profit 88,468 63,041 303,070 218,099 Gross margin 71.7% 71.1% 70.4% 69.9% Operating loss $ (28,523) $ (25,130) $ (114,643) $ (104,326) Operating margin -23.1% -28.4% -26.6% -33.4% Net loss $ (26,649) $ (24,548) $ (110,638) $ (103,799) Net loss per share (0.26) (0.26) (1.11) (1.11) Non-GAAP Results Non-GAAP gross profit $ 91,998 $ 66,273 $ 317,623 $ 230,710 Non-GAAP gross margin 74.5% 74.8% 73.8% 73.9% Non-GAAP operating loss $ (2,411) $ (4,394) $ (17,108) $ (21,076) Non-GAAP operating margin -2.0% -5.0% -4.0% -6.8% Non-GAAP net loss $ (537) $ (3,812) $ (13,103) $ (20,549) Non-GAAP net loss per share (0.01) (0.04) (0.13) (0.22) Zendesk Shareholder Letter Q4 2017 - 3