Slack Plunges After Withdrawing Billings View on Uncertainty
- Benefits from remote work trend may fall short of expectations
- Software company says pandemic affects some smaller customers
A menu in the chat service app Slack.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Slack Technologies Inc. withdrew its annual billings forecast, citing business uncertainty, signaling the company isn’t confident it will benefit as much from the work-from-home era as investors expect. Shares fell 16% in extended trading.
Slack had earlier projected billings of as much as $1 billion this fiscal year. Investors closely track this metric for cloud-based software companies because it gives a view of the strength of the company’s pipeline.