Shares of business messaging and collaboration app provider $Slack Technologies Inc(WORK.US)$ dropped 15% on Friday's trading session amid mixed reviews from analysts after the company reported first-quarter sales that beat forecasts, but withdrew its full-year guidance for so-called calculated billings.
WORK opened lower at the market open with the price around $32, after a continuous climb since 5/28.
The San Francisco company posted revenue of $201.7 million, up 50% year over year, and a non-GAAP per-share loss of 2 cents, due to the rising costs. Analysts polled by FactSet were expecting sales of $188.5 million and a non-GAAP per-share loss of 6 cents.
Slack ratings on 6/5:
Source: Benzinga
The results were good, "but not nearly enough," Mizuho analyst Gregg Moskowitz wrote in a note to clients.
The primary longer-term issue remains the competitive threat from Microsoft (MSFT) - Get Report Teams, which is continuing to gain momentum, Moskowitz wrote, keeping his neutral rating on the stock with a $29 one-year price target.
Wedbush Securities thinks Slack delivered solid Q1 results with some blemishes, but warns on the lurking competitive threat of Microsoft.
"We believe the company will have significant difficulty further penetrating the core enterprise market and MSFT installed base given the significant competitive offering from Microsoft's TEAMS product that could slow growth going forward quicker than the Street is anticipating, despite the tailwinds," updates analyst Dan Ives.
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Source: Seeking Alpha
Editor: Celeste