The startup has not yet hired bankers, and is not likely to for several months, sources said. Zendesk’s fiscal 2012 revenue will be approximately $30 million, with the coming year expected to generate about $70 million and by 2014, Zendesk is anticipated to be generating $100 million or more annually, according to multiple sources.
Weighing Zendesk against comparables in Workday and ServiceNow, one source said, it is possible for the company to go public at a revenue multiple of 20x. Workday, when it debuted last month, offered its shares at a revenue multiple of 22.5x and ServiceNow’s stock was offered at a multiple of 22.2x in June.
“[CEO] Mikkel [Svane] isn’t looking to sell it to a competitor; pretty much the only long-term option for the company is going public,” one source said.
Svane appears to have been busy in 2012 not only running his startup; early Thursday morning he tweeted: “Hello world. Hello Eva Svane” and an accompanying picture of a newborn.
In 2012, and in the wake of the Facebook IPO, enterprise technology startups have been especially hot with investors.
One source said broader economic conditions could delay the IPO, but expressed optimism that the offering would still come in 2013.
Zendesk has raised $70 million since its founding in 2007 and $15 million via Series D debt facility, according to Thomson Reuters data. The most recent round came earlier this year, in the form of a $45 million Series D investment from new backers that would include Goldman Sachs, GGV Capital and Redpoint Ventures (Redpoint led the round).
In 2010, Thomson Reuters data shows the company was valued at $159 million for its $19 million Series C round; this included Matrix Partners for the first time, and backers Benchmark Capital and Charles River Ventures (Matrix led the round).
Zendesk also raised $6 million from Benchmark and Charles River Ventures in its Series B in July 2009; Thomson Reuters data shows it was valued at $21 million at that time (Benchmark led the round). Charles River Ventures was the only VC to participate in all of Zendesk’s rounds, according to Thomson Reuters data. The VC was the lone backer for the company in its Series A round in 2009.
Zendesk could not be reached for comment for this story.
Image Credit: Zendesk