Slack Technologies Inc. (WORK) the parent company of workplace messaging app Slack reported its results for the second quarter of the year in which it recorded declining growth rate which the company attributes to the coronavirus pandemic.
“In Q2, growth in many of our customers contracted or flattened versus normal seasonal trends. In August, growth began to trend at more typical seasonal levels,” said the company’s chief financial officer Allen Shim.
Slack says it has been offering credit, installment payment and extended billing duration since the pandemic set foot to help users continue accessing the platform even during the tough economic times courtesy of the pandemic.
The above adjustments resulted to the company’s revenue declining by $11 million in the first half of the year.
Quarterly billing for Slack in second quarter increased by 25% however growth rate was down by 38% compared to what the company reported on first quarter. Revenue was up by $7 million in the second quarter but this did not reflect in the full year outlook.
The company adjusted its annual revenue target to $870 million-$876 million, this is at par with the $872.3 million analysts have estimated for the company.