Zendesk (ZEN) priced in the middle of their range at $9/share this morning. This is another promising SaaS technology company that's at a $100M revenue run rate but still has a negative 24% operating margin. Like most SaaS companies their aim is to reach 20% margins over time. Lately the market has been a little fickle regarding what valuation multiples to put on these companies.
UPDATE 5/19: Since pricing ZEN has been ripping higher and closed today at $16.50. Several articles . . .