Slack Reports Q1 Earnings Beat, Paid Customers Up 28% YoY

Slack Technologies WORK shares are trading lower after the company reported first-quarter earnings results.

The company reported quarterly losses of 2 cents per share, which beat the analyst consensus estimate by 4 cents. This is a 91.3% increase over losses of 23 cents per share from the same period last year.

Slack reported quarterly sales of $201.70 million, which beat the analyst consensus estimate of $187.65 million by 7.49%. This is a 49.61% increase over sales of $134.82 million the same period last year.

Slack sees second-quarter adjusted EPS at a loss of 3-4 cents versus the 6-cent loss estimate, and sales at $206-$209 million versus the $199.8 million estimate.

Slack reports an addition of 12,000 net new paid customers, addition of over 90,000 new organizations on either free or paid subscription plan. The company reports over 122,000 paid customers, up 28% year-over-year.

"Q1 was a phenomenal quarter for Slack, with the addition of 12,000 net new Paid Customers and 50% revenue growth year-over-year," said Stewart Butterfield, CEO at Slack Technologies.

Slack shares were trading down 14.58% at $32.41 in Thursday’s after-hours session, as the strong guidance may not have been as good as traders wanted. The stock has a 52-week high of $42 and a 52-week low of $15.10.

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