Slack's user growth hurt by competition, shares slump | HT Tech

Slack's user growth hurt by competition, shares slump

As the market for remote work expands, many players like Zoom, Google and Microsoft Teams are looking to capture a larger share of the market.

By:REUTERS
| Updated on: Sep 09 2020, 06:00 IST
Slack
Slack (Slack/Edited)

Slack Technologies Inc posted slowing quarterly billings growth and added fewer paid customer to its workplace messaging platform, hurt by strong competition in the work-from-home market, sending its shares down 15% in after-hours trading.

As the market for remote work expands, many players like Zoom, Google and Microsoft Teams are looking to capture a larger share of the market.

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This has further pressured Slack that has flagged slowing demand from worst-affected industries like retail and travel, prompting it to withdraw its full-year billings target earlier this year.

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The platform, once dubbed the "email killer", said it added 8,000 new customers in the second quarter, lower than the 12,000 users it added in the first.

Slack posted a 25% rise in second-quarter billings, falling short of the 38% growth it posted in the first quarter. Billings are an important metric for growth for a subscription-based platform like Slack.

Slack's second-quarter revenue topped expectations by nearly $7 million, but that overachievement was not mirrored in the full-year outlook. Slack's annual revenue forecast of $870-876 million was roughly in line with expectations of $872.3 million.

The company said net loss attributable to common stockholders narrowed to $74.8 million, or 13 cents per share, from $359.6 million, or 98 cents per share, a year earlier.

Reporting by Neha Malara.

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First Published Date: 09 Sep, 06:00 IST
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