Slack announces its results for the first quarter of the fiscal year 2020, its forecasts for the second quarter of fiscal year 2020 and the forecast for the full fiscal year 2020

SAN FRANCISCO – (BUSINESS WIRE) – Slack Technologies, Inc., the leading global collaboration center that
makes the professional life of people simpler, more pleasant and more productive,
today released financial results for the quarter ended April 30
2019.

Financial Highlights of the First Quarter of Fiscal Year 2020:

• Total revenue was $ 134.8 million, up 67% over the previous year.

• Billing was $ 149.6 million, an increase of 47%.
  Year after year.

• Gross margin in accordance with GAAP is $ 116.2 million, representing a gross margin of 86.2%, compared to
  million, or a gross margin of 87.5%, in the first quarter of
  fiscal year 2019. Non-GAAP gross profit amounted to $ 116.9 million, or 86.7%
  gross margin, compared to $ 71.4 million, or 88.3% of gross margin, in the
  first quarter of fiscal year 2019.

• Operating loss under GAAP was $ 38.4 million, or 28% of total revenue,
  compared to a loss of $ 26.3 million in the first quarter of the fiscal year
  2019, or 33% of total revenues. Non-GAAP operating loss was $ 33.8
  millions of dollars, or 25% of total revenues, compared to a loss of $ 20.2 million
  first quarter of fiscal year 2019, representing 25% of total revenues.

• GAAP net loss per basic and diluted share was $ 0.26. Net loss not in accordance with GAAP
  per share was $ 0.23.

• Net cash flow from operations was $ 14.1 million, or 10% of the total.
  revenues of $ 3.4 million compared to cash generated from operating activities.
  4% of total revenue, for the first quarter of fiscal year 2019. Free
  Cash flow was ($ 34.2) million, or 25% of total revenue, compared to
  ($ 15.0) million, or 18% of total revenues for the first quarter of
  year 2019.

Recent highlights:

• Highlights of the first quarter:

  • Completed the quarter with more than 95,000 paid customers

  • The retention rate in net dollars was 138%

  • Number of clients paid more than $ 100,000 per year
    the recurring business figure stands at 645, up 84% from the previous year

  • Annual Frontiers Customer Conference in San Francisco, with
    more than 1500 participants.

Financial Outlook:

For the second quarter of fiscal year 2020, the company currently has
waits:

• Total revenue from $ 139 million to $ 141 million, representing
  growth of one year on the other from 51% to 53%.

• Non-GAAP loss of operations from $ 77 million to $ 75 million, including
  approximately $ 32 million of non-recurring expenses related to direct listing.

• Non-GAAP net loss per share from $ 0.20 to $ 0.19 assuming weighting
  average number of outstanding shares of 367.7 million.

• Approximately $ 280 million associated with the performance project
  acquisition of restricted stock units of outstanding employees acquired over time,
  or RSUs, upon registration of the Company on the NYSE. This charge will be
  operating loss under GAAP and earnings per share, but not operating loss or
  earnings.

For the full year 2020, the company currently plans:

• Total revenue from $ 590 to $ 600 million, representing
  annual growth from 47% to 50%.

• Non-GAAP operating loss of $ 192 million to $ 182 million, including
  approximately $ 34 million in one-time expenses related to direct registration.

• Non-GAAP net loss per share from $ 0.44 to $ 0.41, assuming weighting
  average number of outstanding shares of 399.9 million.

• Billing calculated from $ 725 million to $ 745 million, representing
  annual growth of 40% to 44%.

• Net free cash flow expense from $ 120 million to $ 105 million, including
  approximately $ 34 million of non-recurring expenses related to direct listing.

Non-GAAP financial measures

This press release and the tables that accompany it contain the following information:
non-GAAP financial measures: calculated billing, free cash flow,
non-GAAP gross margin, non-GAAP gross margin, non-GAAP sales and
marketing expenses, non-GAAP, non-GAAP research and development expenses
general and administrative expenses, non-GAAP operating loss, non-GAAP
operating margin, non-GAAP net loss and non-GAAP net loss per share.
Some of these non-GAAP financial measures exclude stock-based accounting.
compensation and amortization of intangible assets.

The Company believes that these non-GAAP measures of financial results
provide information useful to management and investors regarding certain
Financial and commercial trends related to Slack's financial situation
and the results of exploitation. The Company's management uses this non-GAAP information.
measures to compare the performance of the company with that of previous periods
for trend analysis, as well as for budgeting and planning. L & # 39; Company
considers that the use of these non-GAAP financial measures constitutes a
additional tool to be used by investors to evaluate ongoing operations
trends and comparing the company's financial measures
with other software companies, many of which report non-GAAP results.
financial measures to investors. Non-GAAP financial information is
presented as additional information only, and should not be
be considered as a substitute for the financial information presented
in accordance with GAAP and may differ from securities with the same security.
non-GAAP measures used by other companies.

The Company's management does not consider these non-GAAP measures in
isolation or as an alternative to specific financial measures
in accordance with GAAP. The main limitation of these non-GAAP activities
financial measures is that they exclude significant expenses and incomes
Under GAAP, they must be recorded in the financial statements of the corporation.
statements. In addition, they are subject to inherent limitations as
they reflect the exercise of judgment by management on expenses
and income are excluded or included in computing these non-GAAP items
financial measures. Slack urges investors to consider reconciliation
its non-GAAP financial measures in the comparable GAAP financial statements.
measures, which it includes in press releases announcing
financial results, including this press release, and not to rely on
unique financial measure to evaluate the activities of the company.

Tables of reconciliation of financial measures GAAP most comparable to
the non-GAAP financial measures used in this press release are included
with the financial tables at the end of this release. Slack has not
reconciled its outlook for non-GAAP operating loss and non-GAAP net income.
loss per share to their most directly comparable measure under GAAP because
reconciliation of stock-based compensation is out of Slack's control
and can not be reasonably predicted. As a result, a rapprochement
Non-GAAP prospective operating loss and non-GAAP net loss per share
is not available without unreasonable effort.

Forward-looking statements

This press release contains "forward-looking statements" within the
sense of the "safe harbor" provisions of Private Securities
Litigation Reform Act, 1995, including, but not limited to, declarations
concerning the financial perspective and market positioning of the company. These
Forward-looking statements are made from the date they were published.
published and were based on current expectations, estimates, forecasts and forecasts
projections as well as the beliefs and assumptions of management. words
such as "expect", "anticipate", "should", "believe", "hope", "target"
"Project", "objectives", "estimate", "potential", "predict", "may", "will"
"Could", "could", "would have", "will" and variations of these terms or
of these terms and similar expressions are intended to identify
these forward-looking statements. Forward-looking statements are subject to
a number of risks and uncertainties, many of which involve factors or
circumstances beyond the control of the company. From the company
actual results may differ materially from those stated or implied in
forward-looking statements because of a number of factors, including but not limited to
the risks described in the company's registration statement on
Form S-1 filed with the Securities and Exchange Commission on May 31
2019 and other documents that may be filed by the Company from
from time to time with the Securities and Exchange Commission. In particular,
the following factors, among others, could lead to different results
materially from those expressed or implied by these
statements: the company's recent growth rates may not be representative of the
future growth; the Company may experience quarterly fluctuations
its operating results due to a number of factors that make its
future results difficult to predict and could result in
transactions below the expectations of analysts or investors or
fluctuate more than expected; the company could not manage its growth
effectively and may be unable to execute his or her business plan or maintain
high level of service and customer satisfaction; real or perceived
errors, failures, vulnerabilities or bugs in Slack could damage the
The business, results of operations and financial condition of the company; a
security incident may allow unauthorized access to the
systems, networks, or data or data organizations on Slack, damage
reputation, create additional responsibility and harm its financial position.
results; any actual or perceived failure on the part of the Company to comply
privacy, data protection, information security, consumer privacy, data
residency or telecommunications laws, regulations, government access
requests, and obligations in one or more territories could result
in proceedings, actions or sanctions against the Company and could harm
his activity and his reputation; the risk of interruption or performance
problems, including an interruption of service, related to the activities of the company.
technology or infrastructure; the market and categories of software in
which the company participates are competitive, new and rapidly
change, and if it does not compete effectively with the established
companies and new entrants in its market, its results
operations, and the financial situation could be damaged; a long
infringement action, claim resulting in substantial compensation,
or a claim giving rise to an injunction could harm the
operating results; generally unfavorable economic and market conditions;
the company's ability to attract and retain qualified employees and
staff; changes in exchange rates; general policy or
destabilizing events, including wars, conflicts or acts of terrorism; and
other risks and uncertainties. Past performance is not necessarily
indicative of future results. Forward-looking statements included in
This press release represents the company's point of view as of the date of this
Press release. The company anticipates that subsequent events and
the evolution of the situation will change his point of view. The company does not engage
intention or obligation to update or revise any forward-looking document.
statements, whether as a result of new information, future events or
other. These forward-looking statements should not be considered
representing the views of the company from any date after the date
of this press release.

Additional information on these and other factors
the results of the corporation are included in the Company's filings with the SEC,
you can get by visiting the Investor Relations website at
investor.slackhq.com or the SEC's website at www.sec.gov.

Income Webcast

The Company will host a public webcast at 2:00 pm PDT today to discuss
results for the first quarter of its 2020 fiscal year.
to be accessible by dialing (866) 211-3197 in the US and (647)
689-6597 at the international level. The conference ID is 6459414. Webcast
replay, and the audio download will also be available on the Company
Investor Relations website at investor.slackhq.com.

About Slack

Slack is where the work is going. Slack is a new layer of business
technology stack that brings together people, applications and data – a
Collaboration hub where people can work effectively together, access
critical applications and services, and find important information
their best work. People around the world are using Slack to connect their
teams, unify their systems and advance their business.

Slack and the Slack logo are trademarks of Slack Technologies, Inc. or
its subsidiaries in the United States and / or other countries. Other names and
the marks may be claimed as the property of others.