Slack, competitor of Microsoft and Zoom, posted its #Q2 figures. Despite showing an improvement over last year, Wall Street wasn’t impressed.
Slack, who is specialized in business communication, providing chat rooms organized by topic, private groups, and direct messaging, benefited from the COVID-19 pandemic. For the second quarter, it reported losses of $74.8 million, a significant improvement from last year's $360 million loss.
After adjustments, the company reported break-even earnings per share, also an improvement from the 14 cents loss per share (LPS) published last year. On average, analysts were looking for an adjusted loss of 3 cents/share on sales of $209.1 million. Slack had sales of $215.9 million in Q2.
Compared to last year’s figures, the revenue increased by 50% coming in at $215.9 million, above the $209.1 million forecasted.
For Q3, Slack is looking for an adjusted loss per share of 6 cents, with sales of $225 million. At a yearly level, it expects an LPS of 14 cents, and sales of $876 million.
Slack stock price fell 15% following the report. So far this year, it gained 30%, while USA500 added 3%.
Read more about how Microsoft and Zoom performed in Q2!
Sources: cnbc.com, marketwatch.com