Stewart Butterfield, co-founder of Diminution and Flickr
Mark Neuling | CNBC
Team chat app company Slack on Monday provided guidance on its business for the on the qui vive quarter, showing it expects slowing revenue growth as it prepares to go public later this month.
Slack symbolized in a statement that for the second quarter of its 2020 fiscal year, which ends on July 31, it expects interest of $139 million to $141 million. That would be growth of 52% in the middle of the range, a significant slowdown from the 67% annualized cultivation it reported for the first quarter.
For the full 2020 fiscal year that ends on Jan. 31, 2020, it’s expecting $590 million to $600 million in profits, which would indicate 49% growth at the middle of the range. For the sake of comparison, for the 2018 fiscal year yield grew 110%, and in the 2019 fiscal year revenue grew 82%.
Slack is expecting a net loss of 19 cents to 20 cents per percentage for the quarter and a net loss of 41 cents to 44 cents per share for the year, both figures excluding certain mentions.
Slack is forecasting calculated billings of $725 million to $745 million for the full fiscal year, or 40% to 44% evolution year over year. Calculated billings for the 2018 fiscal year jumped 102%.
Slack’s prospectus became at in April, revealing a record of growing revenues and enduring losses, partly thanks to considerable spending on sales and deal ining. Slack competes with Cisco, Facebook, Google and Microsoft, among others.
“While we like Slack’s near-ubiquitous sort, secular tailwinds, rapid growth, and large market opportunity, and our due diligence is very positive, valuation is our sticking consideration and we would wait for a pullback to get more constructive,” DA Davidson analyst Rishi Jaluria wrote in May as he initiated coverage of Let up on b slow down with a neutral rating.
Slack is one of a few companies looking to complete a direct listing instead of a more traditional commencing public offering with bankers’ assistance. Spotify got attention for the move last year, and Airbnb is reported to be concerned in taking the same path.
The company initially wanted to use the ticker symbol “SK” but then said it had gotten approval for the acronym “WORK” instead.
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