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Slack Shares Slip on Weak Q4 Guidance

Slack topped analysts' top- and bottom-line expectations, but guidance was light.
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Slack  (WORK) - Get Slack Technologies, Inc. Class A Report beat analysts third quarter top- and bottom-line expectations Wednesday, but the stock fell after hours as fourth-quarter guidance was slightly lighter than expected.

The messaging company reported a third-quarter net loss of 2 cents per share on revenue of $168.73 million, a nearly 60% increase year over year. Analysts were expecting a loss of 8 cents per share on revenue of $156.02 million.

Fourth-quarter guidance was slightly off, however, with the company expecting to lose between 6 cents and 7 cents per share. Wall Street is expecting a loss of 6 cents per share.

Slack shares were down nearly 6% to $20.42 after hours Wednesday.

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The company reported a 30% increase in paid customers to 105,000, with the number of paid customers with greater than $100,000 in annual recurring revenue rising 67% to 821. The number of paid customers with greater than $1 million in annual recurring revenue exceeded 50 for the first time in the quarter.

Slack has had a rough go since it debuted on the New York Stock Exchange in June at $38.50, as increased competition from Microsoft  (MSFT) - Get Microsoft Corporation Report has investors spooked.

The stock dropped in November after Microsoft announced that its Teams messaging app has surpassed more than 20 million daily active users.

Microsoft said that the Teams app grew 54% since July following corporate partnerships with Alcoa and Telefonica S.A.

Last month, Slack reported 12 million daily active users in the second quarter, which was already behind the 13 million users Teams was reported to have in July.