Slack Reports Q2 Sales Beat, Paid Customer Growth Up 30%

Slack Technologies WORK reported quarterly sales of $215.90 million on Tuesday, which beat the analyst consensus estimate of $209.10 million. This is a 48.92% increase over sales of $144.97 million the same period last year.

The company reported breakeven earnings per share.

Slack sees third-quarter adjusted earnings at a loss of 6 cents to 5 cents per share and sales at $222 million to $225 million.

"Paid Customer growth — which is the single most important driver of the business over the long term — accelerated in Q2, up 30% year-over-year," said CEO Stewart Butterfield. "One of the drivers of this acceleration was Slack Connect, which offers seamless, secure intercompany collaboration that we believe is light years ahead of email. We ended the quarter with more than 380,000 connected endpoints, up more than 200% year-over-year, and now more than 52,000 Paid Customers use Connect, up 160% year-over-year."

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"In a volatile macro environment, we remain focused on investing for long-term growth and driving innovation in this category," said Allen Shim, CFO at Slack. "Our largest customers are standardizing their work on Slack, and we ended the quarter with 87 Paid Customers spending over $1 million annually, up 78% year-over-year."

Despite the sales beat, Slack shares were trading down 18% at $23.90 in Tuesday's after-hours session. The stock has a 52-week high of $23.85 and a 52-week low of $1.32.