Slack share slumps after quarterly figures

Slack share slumps after quarterly figures

The office chat service slack so disappointed investors with its forecast for the upcoming business that the company at times lost a fifth of its value.

In pre-market U.S. Trading on thursday, sentiment improved somewhat, and the stock was still down about twelve percent.

Slack’s figures for the past fiscal quarter, which ended in january, exceeded analysts’ estimates, but its revenue forecast for the current quarter failed to meet expectations.

Slack was already seen among the potential beneficiaries of the coronavirus crisis, as companies let more employees work from home and forgo business trips. Video conferencing services such as zoom, among others, experience a surge in demand as a result. However, even zoom has recently had to admit that it is uncertain to what extent this will bring paying customers in the long term.

Slack chief executive stewart butterfield made similar remarks. While the service is seeing stronger usage, he said in a conference call with analysts. At the same time, he was cautious: "at this point, we do not have a clear idea of the consequences of the economic environment on our business."At the same time he was convinced that slack was on the market "with the right product at the right time.

In its fourth fiscal quarter, slack increased sales by 49 percent year-on-year to almost 182 million US dollars (163.04 million euros). The company now has 70 customers spending more than a million dollars a year, with 893 spending more than $100,000, it said. Slack is free in a basic version with limited functions. Annual revenue reached $630.4 million, up 57 percent.

For the current quarter, slack expects sales of between 185 and 188 million dollars, which would correspond to an increase of 37 to 39 percent. Analysts had expected more than 188 million dollars. For the full fiscal year, slack expects revenue growth of up to 37 percent to as much as $862 million.

In the past quarter, the loss of 89 million dollars was more than twice as high as in the previous year. For the full fiscal year, the balance sheet was in the red by $571 million, compared to a loss of $140.7 million the previous year.

Slack shares started last june at a price of more than 38 dollars on the stock exchange. In after-hours trading on thursday, the price fell to 17.22 dollars.

Leave a Reply

Your email address will not be published.