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Slack Shares Fall By 20% - Firm Announces Fiscal 2nd Quarter Results

Author : Pankaj Singh | Published Date : 2020-09-10 

Slack shares plunged by approximately 20% in the extended trading on Tuesday after the firm reported the results for the fiscal second-quarter and full-year guidance that surpassed analysts’ expectations. Though the communication software company beat on full-year guidance, the quarter’s revenue growth came in below 50% on an annualized basis, compared to the two previous quarters.

The company reported a total loss of $73 million, which is noteworthy progress from the previous year’s same quarter where the company faced a loss of $360 million. The pandemic created a great impact on Slack’s entire quarter as people started relying on online tools like Slack and Zoom due to the lockdown and restrictions on gathering in schools and offices. The company’s revenue increased by 50% in the previous quarter, when the lockdown was imposed for around half of the period and 49% before that.

Slack did not reveal the recent number of daily active users, however, last is confirmed the number to be 12 million in October. The company stated that in the last quarter it had more than 130,000 paying customers, 30% year over year, and more than the FactSet consent evaluation of 128,000.

Slack CEO, Stewart Butterfield confirmed that the falling economy has impacted the business. He stated that on the business side there was more budget analysis, precisely from new groups with longer adoption curves. The company witnessed more paid customer churn and slower growth inside of present paying customers in the last two quarters, Slack stated.

With respect to guidance, the company had estimated a financial third quarter accustomed loss of 6 cents to 5 cents per share on $222 Mn to $225 Mn in revenue.

For the 2021 financial year, the Slack stated that it expects an accustomed loss of 14 cents to 13 cents per share and revenue of $870 Mn to $876 Mn. Apart from the after-hours move, Slack shares are up around 31% since the beginning of the year, while the S&P 500 is up 3%.

Source: https://www.cnbc.com/2020/09/08/slack-work-earnings-q2-2021.html

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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