Slack shares sink after earnings don't show skyrocketing growth - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Shares in Slack sunk almost 20% after reporting earnings that show how the pandemic and its rivalry with Microsoft are putting pressure on its growth

Slack shares fell almost 20% after hours, as it reported earnings results that beat Wall Street expectations, but showed slower growth than many on Wall Street expected.Compared to remote work beneficiaries like Zoom, which last week reported a 355% year-over-year revenue increase, Slack's numbers have been underwhelming to analysts.

Slack's revenue of $215.9 million for the second quarter showed 49% revenue growth from a year prior, on par with the growth the work chat company saw in the previous two quarters. However, compared to other remote work beneficiaries like Zoom,, Slack's numbers have been underwhelming to many observers.

If Slack was going to show growth like Zoom did, "it likely would have been last quarter, but this quarter should also have been strong," Futurum Research analyst Newman said. "And given the work from home boom, the company failed to impress in either quarter." Slack has seen more paid customer "churn" and a decrease in expansion within existing paid customers since the beginning of the year,. That means more paid customers are reducing the number of people in their organization using Slack, or electing to not renew subscriptions.

Butterfield said on the analyst call that many companies were scrutinizing budgets more during the last quarter and that "the urgency at the moment favors short-term solutions to solve immediate problems," suggesting that this dynamic is not benefiting Slack. CFO Allen Shim also said that the current situation makes its sales cycle longer.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

its time they sue microsoft for antitrust if epic can sue apple.... SlackHQ slack must sue microsoft stewart

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside the secret club that helps determine which healthcare startups blow up - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. bielinko
Source: BusinessInsider - 🏆 729. / 51 Read more »

Scientists warn UK returning to 'exponential' growth in Covid-19 cases - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Do not take any RNA altering bioengineered vaccine to ostensibly help with a bioengineered virus. Too focused on Africa😂 Like Trump, BorisJohnson set the wrong tone for COVID19 and now the country and its people will pay a price. Tragic.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Julie Miles, vocal coach and entrepreneur, shares a day in her life - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

A former lawyer shares her ongoing struggle with bipolar disorder - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. tcheneyauthor Earn with the THE WORLD FOREX EXPERT TRADERS the best binary and Forex platform , i made $10, 000 within a week with just $1500 investment I never believed it's real till I gave it a try Contact the admin Mr Abrantes Rene via Twitter 👇👇👇 abrantesrene
Source: BusinessInsider - 🏆 729. / 51 Read more »