Slack, poised for a direct public listing later this month, reported double-digit increases in sales during its fiscal first quarter and a steepening operating loss.
The workplace messaging software announced total revenue of $134.8 million for the fiscal quarter ending April 30, representing an increase of 67% over last year. On a non-GAAP basis, the company’s operating loss totaled $33.8 million, wider than the $20.2 million operating loss from the fiscal first quarter of last year. Slack’s net loss, excluding some items, was 23 cents per basic and diluted share.
For the current quarter, Slack projects its revenue will grow as much as 53% over last year to $141 million. Its non-GAAP operating loss is expected to widen to as much as $77 million, including about $32 million relating to direct listing expenses.
Slack expects to see total revenue of between $590 million and $600 million for the full year, representing growth of as much as 50% year-over-year. The company’s fiscal 2020 non-GAAP net loss is expected to come in between 44 cents and 41 cents per share.
Major customers paying more than $100,000 in annual recurring revenue were 645 during the fiscal first quarter, an increase of 84% year-over-year. Slack exited the quarter with 95,000 paid customers.
Calculated billings – which reflect sales to new paid customers plus renewals, along with additional sales to existing paid customers – totaled $149.6 million in the fiscal first quarter, up 47% over last year. Slack expects to maintain a similar growth rate on this measure for the full year, guiding toward as much as a 44% increase over last year to $745 million.
Slack’s first-quarter report comes about a week before the company is set become the latest highly valued tech firm to hit the public markets. Slack fetched a valuation of $7.1 billion by private investors last year.
In February, the San Francisco, California-based company announced that it had confidentially filed to go public and offer shares of its Class A common stock.
In a direct listing, a company avoids using underwriters and instead sells shares directly to the public. The process allows companies to avoid a lock-up period on selling shares, and also does not involve a pre-public capital raise for the company, as is the case with a typical IPO.
Shares of Slack are set to begin trading publicly on the New York Stock Exchange under the symbol “WORK” on June 20.
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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