Slack Technologies Inc (NYSE:WORK) shares continue to fall despite reporting a third-quarter earnings beat on Wednesday.

Adjusted earnings came in at a loss of 2 cents per share, beating estimates by 6 cents. Sales came in at $168.7 million, beating estimates by $12.68 million.

The company issued strong 2020 guidance, but fourth-quarter earnings guidance was relatively weak.

"Shared channels went into general availability in mid-September after an extensive beta period. Since then the rate of adoption has accelerated," said CEO Stewart Butterfield.

"Revenue growth was 60% year-over-year, driven by strong growth upmarket," said CFO Allen Shim. "We ended the quarter with 821 Paid Customers greater than $100,000 in annual recurring revenue, which is up 67% year-over-year. We also exceeded 50 Paid Customers with greater than $1 million in annual recurring revenue for the first time, an indication that large enterprises are increasingly standardizing on Slack as their primary collaboration platform."

Highlights

• Ended the quarter with over 105,000 paid customers, up 30% year-over-year
• Calculated billings increased 47% year-over-year
• Net dollar retention rate was 134%

Slack's stock traded lower by 4% in Wednesday's after-hours session after closing the regular session at $21.66 per share. The stock IPO'd on June 20 at $38.50 per share.

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