Slack Technologies forecast slowing revenue growth in the H2 and a bigger-than-anticipated third-quarter loss in its first report as a public firm on Wednesday, as it faces intense competition from Microsoft and others.
Shares of the workplace messaging system tumbled 13% in prolonged buying and selling. As much as Wednesday’s shut, they’d misplaced 19.3% from their debut value of $38.50 in June.
Analysts have symbolized their skepticism over the corporate’s ability to turn a profit after its warning earlier in the year, something that has damaged high-profile technology shares like Uber Technologies and Lyft that went public before Slack.
The company forecast a third-quarter loss of 8 to 9 cents per share. Analysts on average have been expecting a loss of 7 cents per share, based on IBES data from Refinitiv.
It further estimated revenue in the range of $154 million to $156 million, representing growth of 46% to 48%, which is slower than the 58% this quarter and the 67% increase in the first quarter.
Slack topped Q2 income expectations; however, and posted a smaller-than-expected loss for the quarter ended July 31. The corporate posted revenue of $145 million, surpassing estimates of $141.3 million.
Slack competes with Microsoft Teams, a chat add-on for Microsoft Office365 users. Different similar programs include Workplace by Facebook and Cisco Systems’s (CSCO.O) Webex Teams.
Microsoft unveiled in July it had over 13 million daily active users, above Slack’s over 10 million.
Slack’s total operating bills in the quarter boosted 317.6% to $477.5 million. It said sales and advertising and marketing expenses had been expected to speed up in the second half and pass 50% of revenue.
Slack went public through a direct listing on June 20, instead of the more popular initial public offering (IPO) route. Its shares rose almost 50% in their open trading debut, valuing it at $23 billion.