8, the Nasdaq Composite entered into correction territory as it dropped 10% from its previous highs on Sept. Slack Technologies, Inc operates a business technology software platform that brings together people, applications, and data and sells its offering under a software-as-a-service model. Tech industry sell-offīeyond Slack's own challenges, tech stocks seem to be facing a broader sell-off after a market rally partly driven by the trading activities of the conglomerate SoftBank Group, according to the Financial Times. In addition, management said, larger enterprise customers prioritized other short-term solutions.Īgainst a backdrop of stay-at-home orders, which should boost the demand for remote communications, it seems Slack's platform doesn't wasn't in as high demand as solutions such as Zoom's products, for instance. Its dollar net retention rate dropped to 125% compared to 136% one year ago, which means revenue growth from existing customers decelerated to 25%.ĭuring the earnings call, management justified that relatively disappointing performance by attributing it to the downsizing of smaller customers because of the economic uncertainties. ![]() In contrast, Slack hasn't profited as much from the boost in remote communications in Q2 as it faced challenges with its installed base. Slack Technologies (NYSE: WORK) completed its direct public offering last Thursday, and unlike Lyft and Uber - which are now 'busted' IPOs - shares of the seemingly ubiquitous workplace.
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