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

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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.

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

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