Categories Earnings, Technology

Slack Technologies (WORK) stock plunges despite upbeat Q4 2020 bottom and topline results

Slack Technologies (NYSE: WORK) reported a loss of 4 cents per share on revenue of $181.9 million for its fourth quarter 2020 bettering the market’s estimates of 5 cents of loss per share on revenue of $174.14 million. Shares of Slack, which plunged 9.61% to $21.35 at the end of today’s regular trading session, cratered about 15% during the after-hours on weaker-than-expected 1Q outlook.

Slack Technologies (WORK) Q4 2020 Financial Summary

On a GAAP basis, net loss attributable to Slack common stockholders was $89 million or $0.16 per share compared to net loss attributable to Slack common stockholders of $36 million or $0.29 per share in the fourth quarter of 2019.

For the first quarter of fiscal year 2021, Slack expects adjusted loss per share of $0.07 to $0.06 and revenue to be in the range of $185 million to $188 million, representing year-over-year growth of 37% to 39%.

Also Read: Adobe (ADBE) Q1 profit beats estimates, guides Q2 earnings above view

For the fiscal year 2021, Slack expects adjusted loss per share of $0.21 to $0.19 and revenue in the range of $842 million to $862 million, representing year-over-year growth of 34% to 37%. Calculated billings are targeted to be between $970 million and $1 billion, representing year-over-year growth of 27% to 31%.

The company, which helps connecting the employees by its instant messaging platform, is expected to benefit from the coronavirus outbreak in the near-term as most of the companies around the world have started insisting their employees to work from home.

There has been a considerable number of increase in usage of tools that help to people connect remotely. More number of users have started using tools like Slack, Zoom Video, Microsoft’s Teams, RingCentral and Google’s Hangout.

WORK stock, which plunged to a record low in December, has dropped about 5% so far in this year. Slack is expected to record a new low during tomorrow’s regular trading session. The stock has been already shattered by the news that SEC is probing on Slack’s public listing and how the trading was handled on the debut day on NYSE.

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