Congratulations to ZenDesk on a successful help desk IPO!
Customer support is a huge and growing space, and there is massive growth in the demand for software like TeamSupport and ZenDesk.
Most of the technology industry watched with baited breath last week as ZenDesk (now NYSE:ZEN) went public. Like most IPOs there were no shortage of opinions, but no one really knew how a pure-play helpdesk company would fare.
As we know now, the IPO was a smashing success and the stock has continued to do well. Currently ZenDesk has a valuation of over a billion dollars and isn’t showing any sign of weakness in the market. This valuation puts the company at approximately 14 times trailing 12 month revenue which is an impressive number for any company.
As the CEO of a competitor to ZenDesk, I know how hard it can be to scale and grow a customer support software company, and I applaud Zen’s success in building a good company. I also want to personally congratulate Mikkel Svane and the rest of the ZenDesk team!
ZenDesk’s success has proven that the market for pure-play (ie not integrated with a CRM platform) customer support software is very strong and growing nicely. TeamSupport, and other help desk vendors, have benefited from this market growth and continue to see very impressive growth numbers as well.
ZenDesk pointed out in their IPO filing documents that the market was massive and quoted an IDC research paper which said the market for customer service software was $10.2 billion annually - certainly a huge market and one where there is a lot of space for multiple vendors.
Even though ZenDesk now has even more capital to deploy along with strong name recognition, this is not a market which will be dominated by a single vendor. Customer support is critical to the success of any business, and every company has unique needs and wants from their software of choice.
My background is in enterprise software, and as such we developed TeamSupport to be focused on software and technology companies, especially those who sell to other businesses. Our platform is uniquely positioned for these types of companies as we allow them to truly understand their customers and not simply be reactive to incoming tickets.
TeamSupport also excels at collaboration and we offer unique technology which allows internal teams to work together to ensure that customer issues are resolved - For example, an agent can easily reach out to a subject matter expert for assistance in resolving an issue, or ask fellow support agents to lend a hand.
The market for customer support software is a wonderful space to be in, and while we congratulate ZenDesk on their success, we also look forward to healthy and strong competition in this market!