(Reuters) – Workplace communication platform Slack Technologies Inc forecast a soft revenue outlook for the first quarter on Thursday, sending its shares down more than 20% aftermarket, on a day major U.S. stock indexes went into a tailspin amid coronavirus fears.
The Slack Technologies Inc. logo is seen on a banner outside the New York Stock Exchange (NYSE) during thew company’s IPO in New York, U.S. June 20, 2019. REUTERS/Brendan McDermid
The company warned the coronavirus outbreak could hurt demand for its products as companies might cut back on technology spending and also forecast billings for fiscal 2021 well below analysts’ estimates.
“Forward guidance is a little lighter than you’d expect out of a high-multiple name,” said Rishi Jaluria from research firm DA Davidson and Co.
For the first quarter, Slack expects revenue of $185 million to $188 million, lower than analysts’ average estimate of $188.4 million, according to IBES data from Refinitiv.
The company said…
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