Slack has released its first financial report as a publicly-traded company, beating market expectations but failing to disclose an updated daily active user count. Slack's guidance was also on the light side and its shares took a plunge after market.
The workplace collaboration player reported a second-quarter net loss of $359 million, or 98 cents per share. On a non-GAAP basis, Slack posted a net loss of 14 cents per share on revenue of $145 million. Wall Street was expecting a non-GAAP net loss of 18 cents per share on revenue of $140.7 million.
Slack noted that its revenue was negatively impacted by $8.2 million worth of credits that doled out to customers for two service disruptions during the quarter.
As for the user numbers, Slack hasn't issued an updated figure since January, when it claimed to have 10 million daily active users. In July, Microsoft claimed to be beating Slack with 13 million daily active users on its Teams platform, further intensifying the collaboration-chat war between the two companies.
Nonetheless, Slack said in its Q2 filing that it ended the quarter with over 100,000 paid customers, up 37% year-over-year, with 720 of those paid customers bringing Slack annual recurring revenue greater than $100,000.
"Revenue growth was 58% year-over-year, despite a one-time revenue headwind from credits issued in the quarter related to service level disruption," said Slack CFO Allen Shim. "We remain focused on expansion within existing customers and growing our large enterprise customer base."
In terms of guidance, Slack expects third-quarter revenue in the range of $154 million to $156 million, with a net loss per share between 9 cents and 8 cents. Analysts expect Slack to deliver revenue of $153 million with a non-GAAP EPS loss of 7 cents.
For the year, Slack is expecting a loss from 40 cents to 42 cents with revenue between $603 million to $610 million. Analysts were expecting a full-year loss of 40 cents on revenue of $601 million.
Shares of Slack were down nearly 14% after hours.