NEW YORK (TheStreet) -- Shares of Zendesk (ZEN - Get Report) are jumping by 5.6% to $24.12 on heavy trading volume late Wednesday morning, after the San Francisco-based company posted better-than-expected results for the 2016 first quarter and provided an upbeat forecast.
After yesterday's closing bell, the software development company said it had an adjusted loss of 8 cents per share, topping analysts' expectations for a loss of 10 cents per share.
Revenue spiked by 62% to $68.5 million year-over-year and was above Wall Street's estimates of $63.9 million.
For the quarter ending June 30, Zendesk forecasts revenue in the range of $71 million to $73 million, higher than analysts' projections of $70.35 million.
In 2016, the company expects revenue between $300 million and $305 million, while analysts are looking for revenue of $295.25 million.
Separately, Zendesk appointed Bryan Cox as its first chief revenue officer and Tom Keiser as its first chief information officer yesterday.
Previously, Cox was the senior VP of global customer operations at VMware (VMW) and Keiser was the chief information officer and executive VP of global product operations at Gap (GPS).
About 1.81 million of the company's shares were traded so far today compared to its average volume of 658,810 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ZEN