Slack revenue growth fails to impress, shares tank

published 05.06.2020 00:55

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The company’s first-quarter sales rose 50%, compared with a 49% increase in the fourth quarter and a 67% jump in the first quarter last year.

But unlike Zoom, which earlier this week nearly doubled its expectations for annual sales, Slack’s lukewarm guidance and revenue growth underwhelmed investors who were expecting a blowout quarter.

Social distancing protocols have led many companies to shift to remote work, expanding the market for apps that allow workers to stay in touch and boosting Wall Street expectations for companies such as Zoom Video Communications (ZM.O) and Slack.

(Reuters) - Slack Technologies Inc (WORK.N) on Thursday posted slowing quarterly sales growth, disappointing investors who had expected a surge in demand for its workplace messaging app as companies rapidly adopt remote working tools and technology.

On Thursday, Slack forecast 2021 sales between $855 million and $870 million, representing a growth rate of 38% at the top end of the range.