The company's sales growth has slowed, a trend it expects to continue. Slack reported revenue of $ 145 million for the quarter, up 58% from the same period the year before. This was slower than 67% growth during the first three months of the financial year. The company now estimates total revenue for the year to increase by 51% to 52%, a significant decline from last year when revenues grew 82%.
Like many of its engineers, Slack's revenue is growing, but the company is still unprofitable. The company had a net loss of $ 0.1
CFO Allen Shim said in a conversation with analysts on Wednesday that the annual loss was partly due to an increase in sales and marketing expenses. The company plans to spend more than 50% of its sales and marketing revenues in the coming quarters as it works to win over several large, paying corporate customers, which it relies on for revenue.
Slack now has more than 720 business customers who pay more than $ 100,000 each year for the service, up 75% from the previous year.
Slack shares ended Wednesday up 8% ahead of the earnings report.