Slack Shares Drop After Company Reports Q1 Financial Results

Business communication platform Slack saw its shares dropping on Thursday in extended hours as much as 17% after the company reported Q1 results.

For the first quarter Slack saw revenue grow 50% compared with 49% in the last quarter, on an annualized basis.

For the quarter the company reported a loss of 2 cents per share for adjusted earnings and revenue of $201.7 million.

Analysts polled by Refinitiv had expected an adjusted loss of 6 cents per share on $188.1 million in revenue.

Slack said that it added a record 12,000 paid customers in the quarter. In the two prior quarters it added about 5,000 new customers.

It was earlier this week that Zoom reported 169% revenue growth.

“What you saw with Zoom, what you saw with Teams is a great indication that this is not apples-to-apples and that the products are not truly competitive with one another,” Butterfield told analysts on a conference call on Thursday.

Paid users spent over 120 minutes per day in Slack at the end of the quarter, up from below 90 minutes one quarter earlier, Butterfield said.

Looking ahead at the current quarter, Slack has guided for an adjusted loss of 4 cents to 3 cents per share and $206 million to $209 million in revenue. Analysts surveyed by Refinitiv had been expecting 6 cents in adjusted loss per share on $199.8 million in revenue for that period.

For the full 2021 fiscal year Slack is calling for a loss of 19 cents to 17 cents cents per share on an adjusted basis and $855 million to $870 million in revenue. Analysts surveyed by Refinitiv was an adjusted loss of 20 cents per share and $860.3 million in revenue.

Disclaimer: We have no position in Slack Technologies Inc. (NYSE: WORK) and have not been compensated for this article.