What led to Slack Technologies Inc (NYSE: WORK) stock crash

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Slack Technologies Inc (NYSE: WORK) stock lost over 18.2% on 5th June, 2020 pre-market session (Source: Google finance) after the company has raised the guidance only slightly after Zoom’s gigantic revision earlier this week. The company has reported a loss of $74.4 million and the company has posted better than expected results for the first quarter of FY 21. The company has added a record of more than 90,000 net new free and paid organizations using Slack among 750,000. During the first quarter of FY 21, the company’s paid customers grew 28% to over 122,000 year-over-year. The company had 132% net dollar retention rate for the period. There was 963 Paid Customers with greater than $100,000 in annual recurring revenue, which reflects the growth of 49% year-over-year. There is more than 41,000 Paid Customers using shared channels, which has from over 32,000 at the end of last quarter.

WORK in the first quarter of FY 21 has reported the adjusted loss per share of 2 cents, beating the analysts’ estimates for the adjusted loss per share of 6 cents, according to Analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 50 percent to $201.7 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $186.2 million.

Slack now expects for fiscal 2021 revenue to be in the range of $855 million to $870 million, after previously stating $842 million to $862 million. Slack now expects 2021 adjusted losses to be in the range of 17 cents to 19 cents a share, after previously stating 19 cents to 21 cents a share. For the full fiscal year 2021, Slack expects Non-GAAP operating loss to be in the range of $110 million to $100 million and Free Cash Flow to be in the range of negative $20 million to $0. Due to the ongoing uncertainties surrounding the COVID-19 pandemic, the company has withdrawn the guidance for the full fiscal year 2021 Calculated Billings.

For the second quarter of fiscal year 2021, Slack expects the total revenue to be in the range of $206 million to $209 million, representing year-over-year growth of 42% to 44%, Non-GAAP operating loss to be in the range of $22 million to $18 million and Non-GAAP net loss per share to be in the range of $0.04 to $0.03, assuming weighted average shares outstanding of 564 million.

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