Slack shares fell sharply after hours after it topped revenue estimates, but withdrew its full-year guidance for calculated billings.
For the quarter ending April 30, Slack (WORK) - Get Report reported revenue of $201.7 million, up 50% year over year, and a non-GAAP loss per share of 2 cents. Analysts polled by FactSet were expecting sales of $188.5 million and a non-GAAP loss of 6 cents per share.
However, the company withdrew its full-year guidance for calculated billings -- a metric often viewed as a bellwether for future revenue -- citing "ongoing uncertainties surrounding the COVID-19 pandemic," according to a press release.
Shares plummeted 15% in after-hours trading following the release.
“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 Slack CEO Stewart Butterfield. “We believe the long-term impact the three months and counting of working from home will have on the way we work is of generational magnitude. This will continue to catalyze adoption for the new category of channel-based messaging platforms we created and for which we are still the only enterprise-grade offering.”
Slack added 963 paid customers with greater than $100,000 in annual recurring revenue last quarter, and said that 750,000 organizations were using either a free or paid plan at the end of the quarter, up 49% year-over-year.
For the current quarter, which ends July 31, Slack is guiding for total revenue of between $206 million and $209 million, exceeding analyst estimates of $200 million.
For the full 2021 fiscal year ending in January, Slack was guiding for total revenue of $855 million to $870 million, representing year-over-year growth of 36% to 38% and in range of analyst estimates of $862 million.
Heading into earnings, Slack shares were up 64% year to date.