Analyst Note
| Dan Romanoff, CPA |In a repeat of last quarter, no-moat Slack beat our expectations and its own guidance and raised its revenue outlook for the year. Unfortunately for management, revenue guidance that is in line with Street expectations may not be enough to quench investors’ thirst for growth. Despite being what seems like an obvious work-from-home enabling technology, Slack is seeing macro-related pressure. We see signs of encouragement, including commentary that trends improved as the quarter progressed, including the month of August and even into early September, as well as better-than-anticipated profitability. We also think that Slack Connections will help continue to drive viral adoption.