Slack Technologies on Thursday posted slowing quarterly sales growth, disappointing investors who had expected a surge in demand for its workplace messaging app as companies rapidly adopt remote working tools and technology.
Slack’s lukewarm guidance and revenue growth underwhelmed investors who were expecting a blowout quarter
Shares of the company, which had surged nearly 80% this year, dropped 16% in extended trading.
But unlike Zoom, which earlier this week nearly doubled its expectations for annual sales, Slack’s lukewarm guidance and revenue growth underwhelmed investors who were expecting a blowout quarter.
Guidance
The company’s first-quarter sales rose 50%, compared to a 49% increase in the fourth quarter and a 67% jump in the first quarter last year.
On Thursday, Slack forecast 2021 sales between US$855-million and $870-million, representing a growth rate of 38% at the top end of the range.
