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Slack Plunges After Posting First Earnings Report Since Going Public

posted by janrinok on Thursday September 05 2019, @08:58AM   Printer-friendly
from the slackers dept.

upstart writes:

Submitted via IRC for Bytram

Slack plunges after posting first earnings report since going public

Shares of Slack, maker of the popular workplace chat app, plunged as much as 16% on Wednesday after the company issued its first earnings report as a public company, briefly dropping below the reference price from its direct listing.

Here are the key numbers:

  • Earnings: Loss of 14 cents per share, excluding certain items, vs. 18 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $145 million, vs. $140.7 million as expected by analysts, according to Refinitiv.

Slack said in a statement that its revenue grew 58% year over year in the second quarter of the 2020 fiscal year, which ended on July 31.

Slack debuted on the New York Stock Exchange in June through a direct listing, following the path taken by Spotify last year. A few days before its listing, Slack forecast second-quarter revenue of $139 million to $141 million, representing growth of about 52%.

The company's main competitor is Microsoft, which includes the Teams work chat app in Office 365 business subscriptions. In July, Microsoft released statistics suggesting that Teams is more widely used than Slack. On Wednesday Slack did not provide updated user statistics

"We see an equal opportunity for both Slack and Microsoft Teams to grow as alternatives to traditional e-mail and argue a duopoly-like market structure could form around the two most popular messaging-centric in platforms at maturity," KeyBanc Capital Markets analysts led by Brent Bracelin wrote in a note to clients on Aug. 25.

Slack's uptime — a measure of how frequently the service is operating normally — slipped below 99.9% in June and July, wrote the KeyBanc analysts, who recommend buying the stock. Slack provides customers with credits for future use when uptime is below 99.99%. Those credits can impact revenue. Slack said its revenue for the quarter was negatively impacted by $8.2 million of credits.

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  • (Score: 2, Insightful) by Anonymous Coward on Thursday September 05 2019, @11:50AM (2 children)

    by Anonymous Coward on Thursday September 05 2019, @11:50AM (#889972)

    If you can't work those out it's not the tools that's the problem, it's you, your project lead and your team.

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  • (Score: 2) by SunTzuWarmaster on Friday September 06 2019, @06:55PM (1 child)

    by SunTzuWarmaster (3971) on Friday September 06 2019, @06:55PM (#890650)
    I was actually mocked in an internal meeting last week for using IRC. "You mean ... Internet Relay ... Chat? I thought that died in the 1990s?" to which I replied "Isn't this a meeting to discuss tools by which to collaborate?" Seriously, IRC, E-mail, and git are the mainstays.

    • (Score: 2) by toddestan on Saturday September 07 2019, @05:23AM

      by toddestan (4982) on Saturday September 07 2019, @05:23AM (#890850)

      IRC is what the unofficial chat server runs.

      That happened at a previous job. An old P4 running Debian that was salvaged out of the scrap heap, inconspicuously humming along under someone's desk.