Strong Subscription Growth Drives Slack's Earnings Beat; Shares Rise

The New York Times Finance 1 week ago

(Reuters) - Slack Technologies Inc beat Wall Street estimates for quarterly revenue and profit as it signed on larger companies to its workplace communication platform, sending its shares up nearly 3% in trading after the bell.

The company competes directly with Microsoft Corp's workplace messaging platform, Teams, which grew more than 50% to roughly 20 million daily active users in the September quarter.

In the latest quarter ended Oct. 31, Slack grew by about 20% to more than 12 million daily active users.

"It may take some time for Slack to shake off the 'Microsoft overhang', but this is a step in the right direction to dispute that narrative with investors," said Rishi Jaluria from research firm DA Davidson & Co.

The company has seen strong adoption and benefits from allowing users to use other apps like Salesforce and Google Drive without leaving the platform, he added.

Slack added more than 105,000 paid users during the quarter.

It went public in June opting for a direct listing, instead of an initial public offering, at an offering price of $26 per share. Its shares soared nearly 50% on debut, taking its valuation past $23 billion.

The company forecast fourth-quarter loss between 6 cents and 7 cents per share. Analysts on average were expecting a loss of 6 cents per share, according to IBES data from Refinitiv.

It forecast current-quarter revenue between $172 million (£134.06 million) and $174 million, compared with analysts' estimates of 172.9 million.

Slack's revenue jumped nearly 60% to $168.7 million in the third quarter ended Oct.31, above analysts' average estimates of $156.0 million, according to IBES data by Refinitiv.

The company's total operating expenses soared 68.4% to $142.9 million during the quarter.

However, net loss attributable to common stockholders widened to $89.2 million from $47.7 million a year earlier.

Excluding items, the company reported a loss of 2 cents per share, compared with analysts' estimates of a loss of 8 cents per share.

(Reporting by Neha Malara in Bengaluru; Editing by Shailesh Kuber)


Source link
Read also:
Business Insider › Technology › 3 weeks ago
Slack tweeted a video on Thursday with the caption "ok boomer," appearing to call out Microsoft for a suspiciously similar ad campaign to Slack's. Slack and Microsoft Teams are two competing workplace chat services. Microsoft just revealed it has more...
Business Insider › Technology › 2 months ago
On Thursday, Slack announced that it now has over 12 million daily active users. In comparison, its rival Microsoft Teams most recently reported over 13 million daily active users. Slack says users spend over nine hours a day connected to Slack and 90...
Business Insider › Finance › 3 weeks ago
Microsoft reported Tuesday that Teams, a messaging competitor to Slack, has 20 million daily active users. Slack plunged as much as 11% on the news. In October, Slack reported 12 million daily active users. In addition to having more daily active users...
Business Insider › Finance › 1 month ago
Slack's growth prospects in a critical market will face an imposing wall erected by Microsoft, according to a report by Wedbush securities. Microsoft Teams, a competing product to Slack, is available free to business customers of Microsoft Office 365...
Business Insider › Finance › 1 week ago
Slack's third-quarter results were better than Wall Street expected, but analysts and investors are worried about its growth rate and competition from Microsoft's rival Teams product. Many analysts think Slack's new shared-channels feature could help...
Business Insider › Finance › 1 week ago
Slack's reported Q3 revenue of $168.7 million, an increase of 66 percent from a year prior on Wednesday. But Slack did not provide an update on its active users, a closely watched metric. The company also announced that Chamath Palihapitiya will be...
Business Insider › Technology › 1 month ago
Slack and Salesforce are expanding their partnership, so their joint customers can collaborate more easily using both tools. Brad Armstrong, Slack VP of business and corporate development told Business Insider that these new integrations came about...
Business Insider › Technology › 1 month ago
Slack, the popular work chat app valued at $12 billion, announced new features to help users take advantage of outside apps without having to leave the interface. This is Slack's latest response to the threat posed by chief rival Microsoft Teams, which...
Business Insider › Technology › 1 month ago
Slack CEO Stewart Butterfield addressed the competition from Microsoft Teams, saying the numbers Microsoft released claiming to have more users than Slack are slightly misleading. In July, Microsoft said it had 13 million daily active users, claiming...
CNN › Technology › 3 weeks ago
There's more bad news for Slack: The messaging software company's stock plunged nearly 10% Tuesday after Microsoft announced that its rival Teams product has 20 million users. Slack said in September it had just 12 million customers.
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR