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Slack (WORK) revenue Q1 2021

The Slack Technologies Inc. logo is seen behind the “Fearless Girl” statue outside the New York Stock Exchange (NYSE) during the company’s IPO in New York, USA June 20, 2019.

Brendan McDermid | Reuters

Slack shares fell as much as 17% in expanded trading on Thursday after the company reported steady revenue growth for a quarter that gained more customers as organizations tried to keep communications going with everyone who stayed at a distance during the coronavirus pandemic. The company still failed to provide the kind of blowout that the video call service Zoom did earlier this week.

Here are the key numbers:

  • Earnings: Loss of 2 cents per share, adjusted
  • Income: $ 201
    .7 million

Analysts in demand for Refinitive had expected an adjusted loss of 6 cents per share of $ 188.1 million in revenue. Comparing analysts’ estimates with the results is not necessarily easy given the unpredictable effects of the pandemic during the quarter.

As activity within the Slack team communication software increased with offices and schools closed to reduce the spread of coronavirus, the company’s revenue increased 50% during the quarter, ending April 30, according to a statement. Revenue growth was 49% in the previous quarter. This is hardly a step from 49% growth in the previous quarter. On Tuesday, Zoom reported 169% revenue growth, which exceeded what analysts had expected and more than doubled its earnings management. Slack demanded an adjusted loss for the whole year, which would be 2 cents less than previously predicted.

Slack did not reveal a new daily active user count on Thursday. But in March, CEO Stewart Butterfield published a series of tweets showing how much Slack use was taking off. He said the company’s app had 12.5 million concurrent users on March 25, up from 10 million on March 10.

The company said there were a record 12,000 paid customers during the quarter. During the previous two quarters, approximately 5,000 new customers were added. Slack’s top competitor, Microsoft’s Teams service, has also expanded in recent months.

Slack offered credit to customers affected by the pandemic, and such headwinds amounted to about $ 7 million during the quarter.

On Thursday, Butterfield said Amazon is offering Slack to all employees and Slack will adopt Amazon Web Services Chime video calling technology to improve Slack’s call capabilities.

For the second financial year, Slack predicts an adjusted loss of 4 cents to 3 cents per share and $ 206 million to $ 209 million in revenue. Analyzes investigated by Refinitiv had expected 6 cents in adjusted loss per share of $ 199.8 million in revenue for that period.

For the entire fiscal year 2021, Slack requires a loss of 19 cents to 17 cents per share on an adjusted basis and $ 855 million to $ 870 million in revenue. Consensus among analysts surveyed by Refinitive was an adjusted loss of 20 cents per share and $ 860.3 million in revenue. Previously, Slack had requested an adjusted loss of 21 cents to 19 cents of $ 842 million to $ 862 million in revenue.

The company withdrew its guidance for estimated invoicing, or revenue plus the change in deferred revenue, for the entire fiscal year.

Excluding the post-retirement move, Slack shares have increased by approximately 70% since the beginning of the year.

Senior executives will discuss the results with analysts at a conference call scheduled for 10 p.m. Eastern time.

This is news. Come back for updates.

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