The slack also breaks unexpectedly, but the stock still falls 15% in after-hours trading


Slack Technologies Inc. showed strong growth on Tuesday amid a global pandemic that has increased the need for its collaboration software, but it was once again not enough for investors, as they sent shares in trouble after hours of trading gave.
Dull work,
+ 0.86%
COVID-19 has benefited from the epidemic that sent workers home, as companies sought software that could help their employees communicate and remain productive. Slack’s “freemium” approach to software – which allows some employees to test the software before companies start paying – and now contracts have kept it from showing the type of immediate financial returns that other work-houses have. -Technical beneficiaries are shown by Zoom Video Communications Inc. Like ZM,
-5.13%
, However.

For more: Slack was judged by zoom standards, and it didn’t end well
Slack reported a fiscal second-quarter loss of $ 74.8 million on Tuesday afternoon, or 13 cents a share, on sales of $ 215.9 million, up from $ 145 million a year earlier. After adjusting for stock-based compensation and other factors, the software company reported a correction from an adjusted loss of 14 cents a share a year ago, and was not the first time the company reported an adjusted loss for a quarter was. According to FactSet, analysts expected an average loss of 3 cents on sales of $ 209.1 million.

“Paid customer growth – which is the most important driver of business in the long term – accelerated in Q2, up 30% year-over-year,” chief executive Stewart Butterfield said in a news release Tuesday.
Butterfield said in a conference call with analysts following the earnings report, he expects “the number of customers to increase significantly” in the second half of the year as more companies adopt their communications-collaboration platform. He said that the epidemic has, in part, changed the way employers view internal communications.
Slack predicted adjusted losses in the third quarter from 5 cents to 6 cents a share on sales of $ 222 million to $ 225 million and slightly raised its annual forecast, now adjusted losses of 13 cents to 14 cents. Calls for $ 870 million a share was $ 876 million. According to FactSet, analysts had forecast an average third-quarter adjusted third-quarter loss of 5 cents a share.
Sluggish Chief Financial Officer Alan Shim said during an analyst call that minimum churn among customers spending $ 100,000 per year on the company’s products would contribute to increased revenue. “Obviously, the pace is very encouraging for new customers,” he said.
Slack’s stock traded about 15% of pigeon trading soon after the results were released, and sank to -18.5% during the analyst call. Shares such as the S&P 500 Index SPX have increased by 30% this year,
-2.77%
Has increased by about 3%.
Butterfield has gained wide strong advantage for Slack, but a major competitor, Microsoft Corp. MSFT’s approach is also attacked.
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, Which builds teams software that provides messaging combined with video conferencing similar to zooming. Slack filed an antitrust case against Microsoft in Europe related to the bundling of teams with its other office software offerings.
“this [the lawsuit] “It’s a few years in the works,” Butterfield said during an analyst call. “We really believe [Microsoft’s conduct] Is illegal and antiemetic behavior. [The suit] More than a strategy is a strategy … after competing with Microsoft for 14 quarters. ”
Contribution: John Swartz

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