Slack Wins More Corporate Clients To Strengthen Balance Sheet

Slack Technologies Inc. (NYSE: WORK), dealers in software, says it has gotten more corporate users for its workplace-collaboration software in the last lap of the year. Slack said a number of big companies have already embraced it messaging platform. Slack is a strong competitor of Microsoft's messaging platform, Teams.

Slack has disclosed that it has more than 50 clients that individually generate more than $1 million in annual revenue (that is an additional 20 clients to the 30 it had the previous year) and 821 customers with more than $100,000 in annual revenue(that is over 67% increase from last year).

In October, Slack revealed that it currently has 12 million Daily Active Users (DAUs) on its platform, and also suggested that its user base is more engaged than those on its biggest rival, Microsoft Teams. Among its paid customers, Slack said users spend more than 9 hours a day connected to its service, including spending around 90 minutes per day actively using the platform “In general we continue to see tremendous adoption across customers of the Office suite,” Butterfield said. “They choose Slack despite having a bundle alternative” that wraps in Teams, he added.

"Shared channels went into general availability in mid-September after an extensive beta period. Since then the rate of adoption has accelerated," said Slack CEO Stewart Butterfield. "This is our most exciting product release in collaboration since we first launched Slack."

In its report for the fiscal third quarter, Slack revealed that it had a net loss of $89.2 million compared to a net loss $47.7 million in the 2018 fiscal year.

For the current year, Slack is expecting a loss from 32 cents to 31 cents with revenue between $621 million to $623 million -- up from its previous forecast for between $603 million to $610 million. Analysts however, were expecting a full-year loss of 40 cents on revenue of $608.9 million. Shares of Slack were down about 2% after hours.

Also contained on the balance sheet, Slack said it ended the quarter with over 105,000 paid customers, up 30% year-over-year, with 821 of those paid customers bringing Slack annual recurring revenue greater than $100,000. Slack also said customers with greater than $1 million in annual recurring revenue exceeded 50 for the first time. 

Slacks shares increased by 3.19% in after-hours trading, after the shares of Slack closed down 4% at $21.66 on Wednesday.

 Credit:

CNBC

Wall Street Journal

ZD net

Disclaimer: Investingport fund owns Slack stocks.