Slack’s Quarterly Billing Growth Slows Due To COVID-19 Concessions

Slack had in the previous quarter signaled weak demand from worst-affected industries like retail and travel, prompting it to withdraw its full-year billings target.

“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,” Chief Financial Officer Allen Shim said in a call with analysts.

Slack’s quarterly billings rose 25%, but it fell short of the 38% growth it posted in the first quarter. Billings are an important metric for growth for a subscription-based platform like Slack.

Its second-quarter revenue topped expectations by nearly $7 million, but that overachievement was not mirrored in the full-year outlook.