Heard on the Street: Slack will be challenged to justify its premium, especially given the deceleration that occurs with hypergrowth businesses
By Dan Gallagher Sept. 5, 2019 6:00 am ET Slack Technologies WORK 8.03% cut an unusual path to its public debut earlier this summer, so it seems only fitting that the company’s first round of quarterly results is also breaking some new ground, namely showing that a stock can lose a quarter of its value and still be priced for perfection.
The report showed the predictable strong revenue growth, deeper operating losses and continued cash burn as Slack continues to prioritize its expansion. But the key numbers were all ahead of Wall Street’s estimates, as was the company’s revenue growth forecast for the current quarter and fiscal year ending in January. Still, the stock slid nearly 14% after hours.
Even that low point represented a valuation of about 22 times forward sales. That put Slack in the upper tier of cloud software companies, above many other fast-growing outfits that have had more time to prove their mettle. Slack also carries a substantial premium to Dropbox , which employs a similar “freemium” business model mixing paid corporate users with free consumer use. Dropbox trades for around 4 times forward sales.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
NBC Developing Cryonics Drama From David Slack; Josh Berman Producing, Phillip Noyce To DirectNBC has put in development an untitled cryonics drama from writer David Slack, Drop Dead Diva creator Josh Berman and Sony TV. Phillip Noyce (The Resident) is set to direct and executive produce. W…
Weiterlesen »
This is what to watch when Slack reports earningsSlack raced higher Wednesday ahead of its first earnings report after the bell.
Weiterlesen »
Slack plunges after posting first earnings report since going publicSlack is growing rapidly, but it faces increased competition from Microsoft and has been dealing with service issues.
Weiterlesen »
Slack loss forecast bigger than expected, shares plungeSlack Technologies Inc forecast a bigger-than-expected loss for the third quarte...
Weiterlesen »
Stocks making the biggest moves after hours: Slack, Cloudera and Palo Alto NetworksSee which stocks are posting big moves after the bell.
Weiterlesen »
Slack projects slower sales growth, and its stock slumpsSlack's sales projections signal that strong competition may dent the rapid rise of the workplace communications software maker.
Weiterlesen »