Slack Earnings Just Aren’t Enough For Investors

By Chris Lange Published Sep 8, 4:33PM EDT

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Slack Earnings Just Aren’t Enough For Investors — © courtesy of Slack Technologies Inc.

Slack Technologies Inc. (NYSE: WORK) reported fiscal second-quarter financial results after markets closed Tuesday. The firm said that it had breakeven earnings and $215.9 million in revenue, compared with consensus estimates that called for a net loss of $0.03 per share and $209.1 million in revenue. The same period from last year had a net loss of $0.14 per share and $144.97 million in revenue.

Total revenues increased 49% year over year. At the same time, calculated billings were $218.2 million, an increase of 25% from last year.

As of the end of the quarter, Slack now has over 130,000 paid customers, an increase of 30% year over year. The firm also has over 52,000 paid customers using Slack Connect, up over 41,000 at the end of last quarter.

During the quarter, the company boasted over 985 paid customers with greater than $100,000 in annual recurring revenue, an increase of 37% from last year. The firm had 87 paid customers with greater than $1 million in annual recurring revenue, an increase of 78%.

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On the books, cash and cash equivalents totaled $1.32 billion at the end of the quarter, an increase from $499.0 million at the end of the previous fiscal year.

Looking ahead to the fiscal third quarter, the company expects to see a net loss per share in the range of $0.06 to $0.05 and total revenue in the range of $222 million to $225 million. Analysts are calling for a net loss of $0.05 per share and $223.73 million in revenue for the coming quarter.

Slack stock closed Tuesday at $29.32, with a 52-week range of $15.10 to $40.07. The consensus analyst price target is $34.29. Following the announcement, the stock was down 16% at $24.63 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.