Why Zendesk Stock Is Down 13% Today

Shares of customer-service software company Zendesk (NYSE: ZEN) were lower by 13.5% at midday Friday following Thursday's post-close release of its second-quarter earnings figures, which fell short of expectations.

For the three-month stretch ending in June, Zendesk turned $318.2 million in revenue into a per-share operating profit of $0.13. The bottom line fell by a penny year over year, while the top line improved by 29%. Both figures missed analyst estimates by just a tiny fraction, but a significant fraction given the company's pressured profit margins. Total operating expenses expanded by nearly 36% year over year, exceeding top-line growth.

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Source Fool.com