Slack shares were hit last night in their first results after trading on the New York Stock Exchange in June, despite the fact that the collaborating company overcame analyst forecasts for second-quarter sales.
There were some potholes along the way, including the $ 8.2 million in credits distributed to customers for service failures, as revealed in the finances of the three months ended July 31. However, it was the company's predictions for the third quarter, guiding the increase in losses, which caused the shares to fall more than 15 percent. The dear investor Slack, despite being one of the software teams as a fastest growing service and with a market capitalization of more than $ 15 billion, has never had profits.
The second quarter saw reported revenues grow 58 percent to $ 145m. Slack claims to have 100,000 clients in his books, of which 720 provide annual fees of more than $ 100,000, an increase of 75 percent.
For the third quarter, Slack said it expects revenues of between $ 154m and $ 156m – 46 to 48 percent year-on-year growth and a loss of between $ 47 million and $ 49 million, both slightly higher than expected.
A revenue growth of 48 percent year-over-year may sound more than respectable to many of us, but this nonetheless is less than the revenue growth of 82 percent the previous year (see your IPO presentation to the SEC here).
Throughout the year, the collaborating company increased its orientation to predict revenues of between $ 603 million and $ 610 million.
Slack CEO Stewart Butterfield said the company was moving from its first adjustment with smaller customers and technicians to large companies as their compliance and management functions improved.
"We left the door with an almost perfect product suitable for the market for our first customers who used to be sm Aler and more technical teams. But over the years, when we launched the good Enterprise product, we scaled the equipment of more than 100,000 users, we add key characteristics for our security, administrative control and compliance, we begin to see that the market of real products fits the use case of the big company ". 19659002] He used the conference call to talk about two clients, one in medical care and the other in financial services, who had chosen to use Slack despite using Microsoft Office365, which offers its own collaboration products: MS and SharePoint teams. You see this battle with Microsoft. as the key barrier to Slack's path to profitability, especially since Microsoft began offering a level of freemium equipment in June last year and is also available as part of a Microsoft Office 365 subscription.
Butterfield said that The downtime had been caused by problems with "expanding" the product, but he said he was sure that the company had the staff, the investment and the additional use of automated tests to solve the problem.
Megabuyte analysts have noted that Slack's expected losses indicated its need to "spend a lot on R&D to stay ahead of its main competitor, Microsoft Teams."
A full transcript of the earnings call is available on Seeking Alpha here. ®