Why Slack Stock Fell 18% Last Month
Shares of Slack (NYSE: WORK) fell by 18% in September, according to data provided by S&P Global Market Intelligence. The primary culprit for the decline was a disappointing fiscal second-quarter earnings release.
While top-line revenue growth was solid at 49% as the customer base continued to expand, investors were startled by significant deceleration in billings growth. Calculated billings grew just 25% to $218.2 million, compared to 38% billings growth in the fiscal first quarter. Many of Slack's customers have been significantly affected by the coronavirus pandemic, and the enterprise-collaboration technology company has been offering various concessions to "distressed customers" in order to help them through this difficult time.
Image source: Slack.
Source Fool.com
