Slack beat expectations in its second quarter earnings report, posting $145 million in sales after the bell on Wednesday. The company was expected to report $141.25 million in sales.
Slack’s stock, however, fell swiftly in after hours trading due to weaker-than-expected guidance for the third quarter. The earnings report was the company’s first release since going public in June under the ticker WORK on the New York Stock Exchange.
“We remain focused on expansion within existing customers and growing our large enterprise customer base,” Allen Shim, Slack’s chief financial officer, said in a statement. Shim added that the company’s revenue growth was 58 percent year-over-year increase.
The popular workplace messaging platform posted a net loss per share of $0.14, better than the expected loss of $0.18. Slack, however, said it expects a loss of $0.08 to $0.09 per share in the third quarter, slightly more than what analysts were expecting.
It also said revenue growth would slow from 58 percent to less than 48 percent, which seemed to worry investors after hours with shares falling more than 15 percent. Yet the drop comes after the stock gained more than an 8 percent during the trading day Wednesday.
Since its founding in 2014, Slack has grown to be used by over 600,000 organizations in 150 countries. The platform, which has free and paid subscription plans, is now used by an estimated 10 million people who send over 1 billion messages a week. Shim added that Slack also increased its paid customer base by 720 clients, which marked a 75 percent year-over-year jump.
Slack’s market debut earlier this summer followed several other major tech startups, such as Uber ($UBER) and Lyft ($LYFT), that went public this year.
Forgoing the traditional initial public offering process, Slack directly listed its shares on the market. The big difference between that and an IPO is that the company did not issue new shares, but instead, existing shareholders sold their stock to public investors. That means, unlike Uber and Lyft, Slack did not raise additional capital as part of the IPO.
The last major company to complete a direct listing was Spotify ($SPOT), which went public in April 2018.
“This is an entirely new category of software enabling a once-in-a-generation shift in the way people work together,” Stewart Butterfield, the company's CEO and co-founder, added in a statement. “We believe channel-based collaboration is so superior to email-based communication for work, that this shift is inevitable.”
2021 proved that crypto currency is here to stay. This year saw more and more adoptions of crypto, from top athletes looking to be paid in bitcoin, to Elon Musk even experimenting with bitcoin and dogecoin payments for a bit over at Tesla. And it wasn't all bitcoin either - other cryptos like Cardano and Solana saw some action in 2021 as well. Patrick McConlogue, CEO of Overline and former Citadel Investment Group Engineer explains why 2021 was such a good year for crypto, and what to expect in 2022.
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Adult-use cannabis sales kicked off in Nevada in 2017, but four years later, there isn’t a legal way for the 40 million tourists who visit the state annually to consume. That’s all about to change. Following the passage in June of a bill to legalize consumption lounges, the world’s largest dispensary, Planet 13, is planning a cannabis club as extravagant as Las Vegas. Cheddar’s Chloe Aiello visited the cannabis entertainment complex to find out more.
