Slack loss forecast bigger than expected, shares plunge

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Slack loss forecast bigger than expected, shares plunge
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Slack Technologies Inc forecast a bigger-than-expected loss for the third quarte...

Slack went public via a direct listing on June 20, instead of the more popular initial public offering route. Its shares soared nearly 50% in their public trading debut, valuing it at more than $23 billion.

Slack, however, topped second-quarter revenue expectations and posted a smaller-than-expected loss. The company posted revenue of $145 million, beating estimates of $141.3 million, driven by paid customer growth.The company’s total operating expenses in the quarter surged 317.6% to $477.5 million. Slack, described as an “email killer”, said net loss attributable to common stockholders widened to $359.6 million, or 98 cents per share, in the second quarter ended July 31, from $31.9 million, or 26 cents per share, a year earlier.

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