Slack Technologies News: WORK Stock Slides 15% on Disappointing Billings

Slack Technologies (NYSE:WORK) news for Wednesday concerning its earnings report for the second quarter of fiscal 2021 have WORK stock falling.

A Slack (WORK) sign on the company's headquarters in San Francisco, California.
Source: Sundry Photography /

Slack Technologies released its earnings report for Q2 fiscal 2021 after markets closed on Tuesday. Included in that earnings report was its quarterly billings of $218.2 million. While that’s a 25% increase year-over-year, it wasn’t able to reach Wall Street’s estimate of $232.9 million.

Here are some additional highlights from the most recent Slack Technologies earnings report.

  • Flat adjusted earnings per share are better than Wall Street’s adjusted losses per share estimate of 3 cents.
  • It also comes in higher than adjusted losses per share of 14 cents from the same period of the year prior.
  • Revenue of $215.86 million beat out analysts’ estimates of $209.1 million for the period.
  • The company’s revenue was also up 49% from $144.97 million during the same time last year.
  • Operating loss of $68.63 million is a 81.1% improvement YoY from $363.65 million.
  • Net loss of $73.15 million is 79.7% better from $359.62 million in the second quarter of the previous year.

Allen Shim, CFO of Slack Technologies, said this about the results.

“In a volatile macro environment, we remain focused on investing for long-term growth and driving innovation in this category. Our largest customers are standardizing their work on Slack, and we ended the quarter with 87 Paid Customers spending over $1 million annually, up 78% year-over-year.”

Slack Technologies also includes its guidance for fiscal 2020 in its earnings report. It expects adjusted per-share losses between 14 cents and 13 cents on revenue of $870 million to $876 million. Wall Street’s estimates are for adjusted losses per share of 16 cents on revenue of $872.34 million.

WORK stock was down 15.2% as of Wednesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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