Strong subscription growth drives Slack's earnings beat; shares rise
REUTERS: Slack Technologies Inc beat Wall Street estimates for quarterly revenue and profit as it signed on larger companies to its workplace communication platform, sending its shares up nearly 3per cent in trading after the bell.
The company competes directly with Microsoft Corp's workplace messaging platform, Teams, which grew more than 50per cent to roughly 20 million daily active users in the September quarter.
In the latest quarter ended Oct. 31, Slack grew by about 20per cent to more than 12 million daily active users.
"It may take some time for Slack to shake off the 'Microsoft overhang', but this is a step in the right direction to dispute that narrative with investors," said Rishi Jaluria from research firm DA Davidson & Co.
The company has seen strong adoption and benefit ...