As of Friday, the shares of Slack continued dropping, and the investors stayed disappointed that the company reported steady growth in revenues rather than the blowout digits. Earnings also pointed out that Slack does not have the enormous revenue growth that Zoom can boast of.
The stocks of the company were down by over 17% in the morning trades. Shares primarily fell by 17% in the extended time trading on Thursday evening after the company’s earnings for the first quarter of this year were released. Going by the reports released by Slack, its revenue grew fifty percent during this quarter, as opposed to the 49% they earned in the last quarter on an annual basis.
Though Slack was able to maintain a steady growth of revenue during the quarter, the analysts wanted it to get better numbers, as the ongoing global crisis has caused many offices to resort to remote work facilities.
For instance, Zoom video was able to report 169% growth as of Tuesday, which far exceeded the expectation of the analysts.
Stewart Butterfield, the Chief Executive Officer of Slack, appeared on CNBC on Friday and talked about the company’s present and future plans. Though he did not make any comments on revenue, he did mention that the company is firmly focused on getting new customers. He said that the results of this would be evident from the next year.
Butterfield mentioned in one of his interviews that Slash will realize the benefits of its initiatives over the next year and the year after that. Slack has a record number of 12,000 paid customers in this quarter, and in the previous two quarters, the company had added nearly 5,000 new paid customers.