NEW YORK (TheStreet) -- Zendesk (ZEN) shares are up 11.62% to $22.96 in early market trading on Wednesday after the software development company had its price target set at $30 with an "overweight" rating by analysts at Pacific Crest following the release of the company's first quarter results yesterday.
The company reported a 68% increase in year over year revenue to $42 million, topping analyst expectations of $40 million, while swinging to a net loss of 10 cents per share that topped the 13 cents per share it was expected to lose in the quarter.
The firm was impressed with the nearly 5,300 new customer accounts the company added in the quarter for a total of 54,400 customer accounts.
"We are increasing our 2015 revenue and EPS estimates to $193.5 million and ($0.39) from $187 million and ($0.46). Assuming the average revenue per customer account continues to increase modestly, Zendesk would only need to add an average of 2,550 net new customers per quarter to meet current 2015 guidance. This seems conservative, particularly because it would be around half as many customers as the company added in Q1 alone," said analysts at the firm.ZEN data by YCharts