During the second half of 2017, we observed acceleration in the primary 2018 PRIORITIES metric we use to measure our upmarket progress (percentage of Support MRR from customers with 100 or more Support agents). We benefited As we move into 2018, our key priorities will revolve around two major from a growing level of productivity from the salespeople who joined themes: accelerating our upmarket business through larger deals and Zendesk in the past year. In addition, we saw a strong general uptick in greater penetration with enterprise customers, and empowering our new opportunities worldwide, closing 2017 with a solid set of opportunities customers to provide the best omnichannel customer experiences possible. for new and expanded business across a growing family of products. Our In addition, our product development efforts are focused on delivering increasing number of customer references across certain industries has innovation through new products and enhancements to existing products, contributed to our ability to repeat successes in those industries. including harnessing more data and machine learning opportunities. We believe our progress in 2017 was further underscored by several industry Focus on the Enterprise analyst recognitions in the year. Gartner scored Zendesk the highest for No longer the obsession of small, nimble startups alone, digital its business to consumer (B2C) use case in its December 2017 Critical transformation initiatives are changing even the largest businesses. At Capabilities for the CRM Customer Engagement Center report.* Earlier, the same time, enterprises are recognizing the critical importance of the we improved our position in Gartner’s May 2017 Magic Quadrant for the customer experiences they deliver. We believe these trends and others are CRM Customer Engagement Center* (in which Zendesk is in the Leaders creating new opportunities for us to both attract more enterprise customers quadrant). We also improved our position in The Forrester Wave™: Customer and build deeper relationships with our existing large customers. Service Solutions For Midsize Teams, Q2 2017 (in which Zendesk is a Strong Performer). Enterprise *Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Zendesk Shareholder Letter Q4 2017 - 5
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