Slack Technologies (WORK) - Get Slack Technologies, Inc. Class A Report shares slumped in after-hours trading Tuesday after the messaging and collaboration platform reported that it narrowed its fiscal-second-quarter loss on 49% higher revenue, driven by 30% paid-customer growth, but provided disappointing billings data.
For the quarter ended July 31 the San Francisco company reported a net loss of 13 cents a share against a loss of 98 cents in the year-earlier quarter. Shares outstanding rose 53% to 564.4 million.
On an adjusted per-share basis, Slack broke even in the latest quarter.
Revenue reached $215.9 million from $145 million.
Wall Street analysts surveyed by FactSet had expected a loss of 14 cents a share, or an adjusted loss of 3 cents, on revenue of $209.1 million.
At the time of its previous report, on June 4, the company offered guidance for a loss of 3 cents to 4 cents a share.
At last check Slack shares were down 17% at $24.46. They had closed Tuesday's regular session up 0.9% at $29.32. Through the regular session, the stock had fallen 23% since its last quarterly results.
Slack closed the second quarter with more than 130,000 paid customers, up 30% from a year earlier. Of them, 87 are providing recurring revenue of more than $1 million, up 78%.
Calculated billings were $218.2 million for the quarter, up 25% from a year earlier.
Slack's billings growth is watched closely by Wall Street. Analysts had been looking for roughly 33% growth in billings to $236 million.
For the fiscal third quarter Slack expects an adjusted loss of 5 cents to 6 cents a share on revenue of $222 million to $225 million.
The FactSet survey was looking for a third-quarter adjusted loss of a nickel a share on revenue of $223.9 million.