Categories AlphaGraphs, Earnings, Technology
Slack Technologies (WORK) Q3 loss narrows on higher revenues; beats view
Workplace messaging platform Slack Technologies (NYSE: WORK) reported a narrower-than-expected loss for the third quarter of 2020, aided by a marked increase in revenues. The management also provided guidance for the fourth quarter and full fiscal year. The company’s stock rose sharply during Wednesday’s extended trading session soon after the announcement.

On an adjusted basis, the company reported a loss of $0.02 per share, narrower than last year’s $0.30 per share loss. Meanwhile, unadjusted net loss widened to $89.16 million or $0.16 per share from $47.7 million or $0.39 per share in the third quarter of 2019. The bottom-line beat the market’s projection.
Revenue up 60%
Revenues advanced to $168.7 million from $105.6 million last year and came in above the estimates. At the end of the quarter, the company had more than105,000 paid customers, up 30% from the year-ago period. Calculated Billings was $186.1 million, an increase of 47% year-over-year.
“Shared channels went into general availability in mid-September after an extensive beta period. Since then the rate of adoption has accelerated. This is our most exciting product release in collaboration since we first launched Slack,” said Stewart Butterfield, Chief Executive Officer of Slack.
Outlook
For the fourth quarter, Slack expects total revenue to be between $172 million and $174 million, representing a 41-43% annual growth. It sees an adjusted operating loss of $36-$34 million and an adjusted loss per share of $0.07- $0.06 in the final three months of the fiscal year.
For the whole of 2020, the company forecast revenues in the range of $621 million to $623 million and an adjusted operating loss of $144-$142 million. Loss per share, on an adjusted basis, is expected to be between $0.32 and $0.31.
Stock Performance
Slack went public in June this year through a direct listing and the stock opened at $38.50. Since then, the shares have lost about 44%. They closed Wednesday’s regular session lower.
Most Popular
AMAT Earnings: Applied Materials Q1 2025 adj. profit rises on higher sales
Applied Materials, Inc. (NASDAQ: AMAT), a leading supplier of equipment and software for manufacturing semiconductor chips and flat panel displays, Thursday reported an increase in sales and adjusted earnings for
Cisco Systems (CSCO) bets on strong AI demand to drive growth
After starting the fiscal year on a weak note, Cisco Systems Inc. (NASDAQ: CSCO) has regained momentum, reporting higher second-quarter revenue and profit that beat analysts’ estimates. The company is
What to expect when Hasbro (HAS) reports its fourth quarter 2024 earnings results
Shares of Hasbro, Inc. (NASDAQ: HAS) stayed green on Thursday. The stock has gained 7% year-to-date. The toymaker is scheduled to report its fourth quarter 2024 earnings results on Thursday,