Slack's Stock Plummets Despite Q4 Earnings Beat

Slack Technologies WORK shares were trading sharply lower on Thursday after the company reported fourth-quarter earnings results.

The company reported quarterly losses of 4 cents per share, which beat the analyst consensus estimate by 20%. The company reported quarterly sales of $181.9 million, which beat the analyst consensus estimate of $174.14 million by 4.46%.

See Also: Piper Sandler Remains Bullish On Slack On Broader Enterprise Adoption

Slack sees first-quarter adjusted earnings at a loss of 7-6 cents versus the estimate of a 7-cent loss, sales at $185-$188 million versus the $188.37 million estimate.

"We continue to see significant momentum in our enterprise business and finished the year with 70 customers spending more than $1 million annually on Slack, up 79% year-over-year," said Stewart Butterfield, CEO and Co-Founder at Slack. "As the shift from email to channel-based messaging platforms continues, the largest companies around the world are choosing to standardize on Slack because of our enterprise-grade scalability, security, open platform, ease-of-use and innovative roadmap."

Slack shares were down 22% at $16.56 in Thursday's after-hours session. The stock has a 52-week high of $42 and a 52-week low of $19.53.