Slack Technologies Inc (NYSE: WORK) stock lost over 15.9% to 9th September, 2020 (as of 2:35 pm GMT-4; Source: Google finance).
During the quarter, the calculated billings were hurt by over $4 million of COVID-related concessions and contract duration related headwinds. This brings the total concessions-related billings headwind in the first half to over $11 million. Moreover, $100,000 customer contraction was seen during the quarter with 50 customers moving from the $100,000 to $150,000 bucket to the $50,000 to $100,000 bucket. This compares to only 10 in the second quarter of fiscal ‘20. The ongoing Macroeconomic environment has created some uncertainty for customers. For 3Q21, the fimr expects revenue in a range of $222 million to $225 million, which is year-over-year growth of 32% at the midpoint, lower than the second quarter rise. Non-GAAP operating loss is seen in the range of negative $27 million to negative $23 million driven by rising investments in R&D and sales organizations. The firm forecasts non-GAAP EPS in the range of negative $0.06 to negative $0.05.
But 2Q21 performance was decent, with 985 customers of >$100,000 in annual recurring revenue, which is a 37% yoy rise. The firm ended the quarter with 87 customers with >$1 million in annual recurring revenue, again a rise of 78% on a yoy basis. The trailing twelve month calculated billings rose 38% yoy to $865 million while the Remaining performance obligations surged 80% yoy to $388 million. Net dollar retention was 125% as compared to 132% in the first quarter of 2020. Paid Customers rose 30% yoy to >130,000 as additions boosted in June and July against April and May. The firm’s focus is Re-accelerating paid customer growth with the customer growth feeds the business over the longer-term. The paid customer additions in the second half of this year to exceed additions against same period last year. Coming to top line performance, the overall revenues in the second quarter rose 49% yoy to $216 million, while Calculated billings rose 25% yoy to $218 million.