WORK - Slack Announces Strong Fourth Quarter and Fiscal Year 2021 Results
Crossed $1 billion in revenue run rate with $250.6 million in total revenue in Q4 FY2021
Q4 FY2021 Calculated Billings of $359.9 million, up 41% year-over-year
Added a record of over 14,000 net new Paid Customers, for a total of 156,000
Slack Technologies, Inc., (NYSE: WORK) today reported financial results for its fourth quarter and fiscal year ended January 31, 2021.
Management Commentary:
“The past year has seen an unprecedented acceleration of digital transformation and a radical shift in the popular imagining of how the world uses software to work together,” said Stewart Butterfield, Chief Executive Officer and Co-Founder at Slack. “Slack was built for this. We had a record setting year, crossing over the $1 billion revenue run rate mark thanks to breakthrough product innovation that helps customers unlock all of the opportunity that exists in the new digital-first world of work. Looking ahead, we will continue to innovate and execute by expanding the Slack Connect network, attracting more new Paid Customers, and deepening the breadth and depth of Slack’s open platform.”
“This was a tremendous quarter, with leaders and innovators choosing to standardize on Slack in record numbers. We saw accelerating growth in new Paid Customers, adding 14,000 in the most recent quarter, up from 5,000 in the fourth quarter of the prior year, and continued success in the enterprise segment, with Paid Customers with over $1 million in annual recurring revenue up 54% year-over-year,” said Allen Shim, Chief Financial Officer at Slack. “We’re continuing to manage the business prudently while investing in our long-term opportunity to help companies make the transformations needed to thrive in the new world of work.”
Fourth Quarter Fiscal 2021 Financial Highlights:
- Total revenue was $250.6 million, an increase of 38% year-over-year.
- Calculated Billings was $359.9 million, an increase of 41% year-over-year.
- GAAP gross profit was $215.4 million, or 86.0% gross margin, compared to $157.5 million, or 86.6% gross margin, in the fourth quarter of fiscal year 2020. Non-GAAP gross profit was $219.4 million, or 87.5% gross margin, compared to $160.6 million, or 88.3% gross margin, in the fourth quarter of fiscal year 2020.
- GAAP operating loss was $72.6 million, or 29.0% of total revenue, compared to a $91.2 million loss in the fourth quarter of fiscal year 2020, or 50.1% of total revenue. Non-GAAP operating loss was $6.3 million, or 2.5% of total revenue, compared to a $23.1 million loss in the fourth quarter of fiscal year 2020, or 12.7% of total revenue.
- GAAP net loss per basic and diluted share was $0.14. Non-GAAP net loss per share was $0.01.
- Net cash provided by operations was $15.7 million, or 6% of total revenue, compared to cash provided by operations of $10.5 million, or 6% of total revenue, for the fourth quarter of fiscal year 2020. Free Cash Flow was $15.1 million, or 6% of total revenue, compared to $(0.8) million, or 0% of total revenue for the fourth quarter of fiscal year 2020.
- Our fourth quarter fiscal 2021 financial results reflect $8.7 million of transaction expenses associated with the proposed merger with salesforce.com, inc.
Fiscal Year 2021 Financial Highlights:
- Total revenue was $902.6 million, an increase of 43% year-over-year.
- Calculated Billings was $1,036.5 million, an increase of 35% year-over-year.
- GAAP gross profit was $780.9 million, or 86.5% gross margin, compared to $533.2 million, or 84.6% gross margin, in fiscal year 2020. Non-GAAP gross profit was $795.1 million, or 88.1% gross margin, compared to $552.6 million, or 87.7% gross margin, in fiscal year 2020.
- GAAP operating loss was $283.1 million, or 31.4% of total revenue, compared to a $588.3 million loss in fiscal year 2020, or 93.3% of total revenue.Non-GAAP operating loss was $32.8 million, or 3.6% of total revenue, compared to a $130.6 million loss in fiscal year 2020, or 20.7% of total revenue.
- GAAP net loss per basic and diluted share was $0.53. Non-GAAP net loss per share was $0.03.
- Net cash provided by operations was $72.4 million, or 8% of total revenue, compared to cash used in operations of $12.4 million, or 2% of total revenue, for fiscal year 2020. Free Cash Flow was $62.2 million, or 7% of total revenue, compared to $(62.0) million, or (10)% of total revenue for fiscal year 2020.
- Our fiscal year 2021 financial results reflect $8.7 million of transaction expenses associated with the proposed merger with salesforce.com, inc.
Recent Business Highlights:
- Fiscal Year Highlights:
- Over 156,000 Paid Customers, up 42% year-over-year.
- 123% net dollar retention rate.
- 1,183 Paid Customers with greater than $100,000 in annual recurring revenue, up 32% year-over-year.
- 108 Paid Customers with greater than $1 million in annual recurring revenue, up 54% year-over-year.
- Over 74,000 Paid Customers using Slack Connect, up from over 64,000 at the end of last quarter.
- Over 660,000 connected endpoints on Slack Connect, up over 245% year-over-year.
Non-GAAP Financial Measures:
This press release and the accompanying tables contain the following non-GAAP financial measures: Calculated Billings, Free Cash Flow, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share. Certain of these non-GAAP financial measures exclude stock-based compensation and related employer payroll taxes, amortization of debt discount and issuance costs, and amortization of intangible assets.
Slack believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Slack’s financial condition and results of operations. Slack’s management uses these non-GAAP measures to compare Slack’s performance to that of prior periods for trend analysis, and for budgeting and planning purposes. Slack believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Slack’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Slack’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Slack urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate Slack’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our product development, business strategy and plans, market trends, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Slack’s control. Slack’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Slack’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2020. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that Slack makes with the Securities and Exchange Commission from time to time. The forward-looking statements included in this press release represent Slack’s views as of the date of this press release. Slack undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Presentation:
An investor presentation providing additional information and analysis can be found at investor.slackhq.com.
About Slack:
Slack has transformed business communication. It’s the leading channel-based messaging platform, used by millions to align their teams, unify their systems, and drive their businesses forward. Only Slack offers a secure, enterprise-grade environment that can scale with the largest companies in the world. It is a new layer of the business technology stack where people can work together more effectively, connect all their other software tools and services, and find the information they need to do their best work. Slack is where work happens.
Slack and the Slack logo are trademarks of Slack Technologies, Inc. or its subsidiaries in the U.S. and/or other countries. Other names and brands may be claimed as the property of others.
| SLACK TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data) (Unaudited) |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Revenue |
| $ |
| 250,598 |
|
|
|
|
| $ |
| 181,903 |
|
|
|
|
| $ |
| 902,610 |
|
|
|
|
| $ |
| 630,422 |
|
|
| Cost of revenue |
| 35,175 |
|
|
|
|
| 24,371 |
|
|
|
|
| 121,692 |
|
|
|
|
| 97,191 |
|
|
| Gross profit |
| 215,423 |
|
|
|
|
| 157,532 |
|
|
|
|
| 780,918 |
|
|
|
|
| 533,231 |
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
| 100,695 |
|
|
|
|
| 93,639 |
|
|
|
|
| 382,145 |
|
|
|
|
| 457,364 |
|
|
| Sales and marketing |
| 121,922 |
|
|
|
|
| 103,340 |
|
|
|
|
| 460,709 |
|
|
|
|
| 402,780 |
|
|
| General and administrative |
| 65,438 |
|
|
|
|
| 51,741 |
|
|
|
|
| 221,148 |
|
|
|
|
| 261,365 |
|
|
| Total operating expenses |
| 288,055 |
|
|
|
|
| 248,720 |
|
|
|
|
| 1,064,002 |
|
|
|
|
| 1,121,509 |
|
|
| Loss from operations |
| (72,632) |
|
|
|
|
| (91,188) |
|
|
|
|
| (283,084) |
|
|
|
|
| (588,278) |
|
|
| Interest expense |
| (11,969) |
|
|
|
|
| (279) |
|
|
|
|
| (38,105) |
|
|
|
|
| (858) |
|
|
| Interest income and other income, net |
| 4,082 |
|
|
|
|
| 3,466 |
|
|
|
|
| 28,386 |
|
|
|
|
| 21,368 |
|
|
| Loss before income taxes |
| (80,519) |
|
|
|
|
| (88,001) |
|
|
|
|
| (292,803) |
|
|
|
|
| (567,768) |
|
|
| Provision for (benefit from) income taxes |
| 786 |
|
|
|
|
| 1,093 |
|
|
|
|
| (315) |
|
|
|
|
| 589 |
|
|
| Net loss |
| (81,305) |
|
|
|
|
| (89,094) |
|
|
|
|
| (292,488) |
|
|
|
|
| (568,357) |
|
|
| Net income (loss) attributable to noncontrolling interest |
| 656 |
|
|
|
|
| (91) |
|
|
|
|
| 7,934 |
|
|
|
|
| 2,701 |
|
|
| Net loss attributable to Slack common stockholders |
| $ |
| (81,961) |
|
|
|
|
| $ |
| (89,003) |
|
|
|
|
| $ |
| (300,422) |
|
|
|
|
| $ |
| (571,058) |
|
|
| Basic and diluted net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share attributable to Slack common stockholders, basic and diluted |
| $ |
| (0.14) |
|
|
|
|
| $ |
| (0.16) |
|
|
|
|
| $ |
| (0.53) |
|
|
|
|
| $ |
| (1.43) |
|
|
| Weighted-average shares used in computing net loss per share attributable to Slack common stockholders, basic and diluted |
| 576,258 |
|
|
|
|
| 550,444 |
|
|
|
|
| 567,152 |
|
|
|
|
| 399,461 |
|
|
| SLACK TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
|
|
| January 31, |
|
|
| January 31, |
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ |
| 1,081,357 |
|
|
|
|
| $ |
| 498,999 |
|
|
| Marketable securities |
| 505,895 |
|
|
|
|
| 269,593 |
|
|
| Accounts receivable, net |
| 237,439 |
|
|
|
|
| 145,844 |
|
|
| Prepaid expenses and other current assets |
| 59,702 |
|
|
|
|
| 55,967 |
|
|
| Total current assets |
| 1,884,393 |
|
|
|
|
| 970,403 |
|
|
| Restricted cash |
| 38,490 |
|
|
|
|
| 38,490 |
|
|
| Strategic investments |
| 68,161 |
|
|
|
|
| 28,814 |
|
|
| Property and equipment, net |
| 87,908 |
|
|
|
|
| 102,340 |
|
|
| Operating lease right-of-use assets |
| 219,195 |
|
|
|
|
| 197,830 |
|
|
| Intangible assets, net |
| 17,885 |
|
|
|
|
| 13,530 |
|
|
| Goodwill |
| 76,204 |
|
|
|
|
| 48,598 |
|
|
| Other assets |
| 41,464 |
|
|
|
|
| 41,701 |
|
|
| Total assets |
| $ |
| 2,433,700 |
|
|
|
|
| $ |
| 1,441,706 |
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
| $ |
| 13,145 |
|
|
|
|
| $ |
| 16,893 |
|
|
| Accrued compensation and benefits |
| 108,868 |
|
|
|
|
| 65,196 |
|
|
| Accrued expenses and other current liabilities |
| 29,864 |
|
|
|
|
| 32,123 |
|
|
| Operating lease liability |
| 34,930 |
|
|
|
|
| 30,465 |
|
|
| Deferred revenue |
| 510,311 |
|
|
|
|
| 375,263 |
|
|
| Total current liabilities |
| 697,118 |
|
|
|
|
| 519,940 |
|
|
| Convertible senior notes, net |
| 651,398 |
|
|
|
|
| — |
|
|
| Operating lease liability, noncurrent |
| 225,266 |
|
|
|
|
| 196,378 |
|
|
| Deferred revenue, noncurrent |
| 294 |
|
|
|
|
| 1,451 |
|
|
| Other liabilities |
| 2,183 |
|
|
|
|
| 38 |
|
|
| Total liabilities |
| 1,576,259 |
|
|
|
|
| 717,807 |
|
|
| Commitments and contingencies |
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
| Common stock |
| 58 |
|
|
|
|
| 56 |
|
|
| Additional paid-in-capital |
| 2,371,676 |
|
|
|
|
| 1,945,446 |
|
|
| Accumulated other comprehensive income (loss) |
| 102 |
|
|
|
|
| (71) |
|
|
| Accumulated deficit |
| (1,537,043) |
|
|
|
|
| (1,236,621) |
|
|
| Total Slack Technologies, Inc. stockholders’ equity |
| 834,793 |
|
|
|
|
| 708,810 |
|
|
| Noncontrolling interest |
| 22,648 |
|
|
|
|
| 15,089 |
|
|
| Total stockholders’ equity |
| 857,441 |
|
|
|
|
| 723,899 |
|
|
| Total liabilities and stockholders’ equity |
| $ |
| 2,433,700 |
|
|
|
|
| $ |
| 1,441,706 |
|
|
| SLACK TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (Unaudited) |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
| $ |
| (81,305) |
|
|
|
|
| $ |
| (89,094) |
|
|
|
|
| $ |
| (292,488) |
|
|
|
|
| $ |
| (568,357) |
|
|
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
| 7,620 |
|
|
|
|
| 6,708 |
|
|
|
|
| 28,818 |
|
|
|
|
| 27,127 |
|
|
| Stock-based compensation |
| 57,764 |
|
|
|
|
| 63,237 |
|
|
|
|
| 227,363 |
|
|
|
|
| 426,524 |
|
|
| Amortization of debt discount and issuance costs |
| 10,631 |
|
|
|
|
| — |
|
|
|
|
| 33,690 |
|
|
|
|
| — |
|
|
| Noncash operating lease expense |
| 10,341 |
|
|
|
|
| 8,963 |
|
|
|
|
| 37,615 |
|
|
|
|
| 8,963 |
|
|
| Amortization of deferred contract acquisition costs |
| 4,723 |
|
|
|
|
| 2,631 |
|
|
|
|
| 15,767 |
|
|
|
|
| 8,153 |
|
|
| Net amortization of bond premium (discount) on debt securities available for sale |
| 1,135 |
|
|
|
|
| (103) |
|
|
|
|
| 2,173 |
|
|
|
|
| (2,180) |
|
|
| Change in fair value of strategic investments |
| (2,190) |
|
|
|
|
| 192 |
|
|
|
|
| (20,278) |
|
|
|
|
| (5,599) |
|
|
| Other non-cash adjustments |
| (1,631) |
|
|
|
|
| 532 |
|
|
|
|
| (2,052) |
|
|
|
|
| (210) |
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivable |
| (114,983) |
|
|
|
|
| (61,122) |
|
|
|
|
| (92,361) |
|
|
|
|
| (58,202) |
|
|
| Prepaid expenses and other assets |
| (7,305) |
|
|
|
|
| (8,545) |
|
|
|
|
| (16,601) |
|
|
|
|
| (20,594) |
|
|
| Accounts payable |
| (6,990) |
|
|
|
|
| 5,721 |
|
|
|
|
| (3,411) |
|
|
|
|
| 6,726 |
|
|
| Operating lease liabilities |
| (7,682) |
|
|
|
|
| (9,495) |
|
|
|
|
| (25,603) |
|
|
|
|
| (9,495) |
|
|
| Accrued compensation and benefits |
| 31,258 |
|
|
|
|
| 18,166 |
|
|
|
|
| 43,669 |
|
|
|
|
| 19,045 |
|
|
| Deferred revenue |
| 109,325 |
|
|
|
|
| 72,790 |
|
|
|
|
| 132,901 |
|
|
|
|
| 134,841 |
|
|
| Other current and long-term liabilities |
| 4,986 |
|
|
|
|
| (66) |
|
|
|
|
| 3,237 |
|
|
|
|
| 20,869 |
|
|
| Net cash provided by (used in) operating activities |
| 15,697 |
|
|
|
|
| 10,515 |
|
|
|
|
| 72,439 |
|
|
|
|
| (12,389) |
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases of marketable securities |
| (110,414) |
|
|
|
|
| (87,293) |
|
|
|
|
| (561,161) |
|
|
|
|
| (290,188) |
|
|
| Maturities of marketable securities |
| 78,908 |
|
|
|
|
| 115,328 |
|
|
|
|
| 316,979 |
|
|
|
|
| 517,583 |
|
|
| Sales of marketable securities |
| — |
|
|
|
|
| — |
|
|
|
|
| 5,900 |
|
|
|
|
| 166,074 |
|
|
| Net cash acquired from a business combination |
| — |
|
|
|
|
| — |
|
|
|
|
| 6,571 |
|
|
|
|
| — |
|
|
| Acquisition of intangible assets |
| — |
|
|
|
|
| (2,500) |
|
|
|
|
| (2,375) |
|
|
|
|
| (2,500) |
|
|
| Purchases of property and equipment |
| (551) |
|
|
|
|
| (11,350) |
|
|
|
|
| (10,232) |
|
|
|
|
| (49,626) |
|
|
| Purchase of strategic investments |
| (4,980) |
|
|
|
|
| (4,849) |
|
|
|
|
| (20,045) |
|
|
|
|
| (14,132) |
|
|
| Proceeds from liquidation of strategic investments |
| 139 |
|
|
|
|
| 59 |
|
|
|
|
| 1,265 |
|
|
|
|
| 2,917 |
|
|
| Net cash provided by (used in) investing activities |
| (36,898) |
|
|
|
|
| 9,395 |
|
|
|
|
| (263,098) |
|
|
|
|
| 330,128 |
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from issuance of convertible senior notes, net of issuance costs |
| — |
|
|
|
|
| — |
|
|
|
|
| 841,329 |
|
|
|
|
| — |
|
|
| Purchases of capped calls related to convertible senior notes |
| — |
|
|
|
|
| — |
|
|
|
|
| (105,570) |
|
|
|
|
| — |
|
|
| Proceeds from exercise of stock options |
| 2,751 |
|
|
|
|
| 2,615 |
|
|
|
|
| 13,130 |
|
|
|
|
| 14,227 |
|
|
| Payments of contingent consideration for acquisitions |
| — |
|
|
|
|
| — |
|
|
|
|
| (5,250) |
|
|
|
|
| (5,000) |
|
|
| Issuance of common stock for employee stock purchase plan |
| — |
|
|
|
|
| — |
|
|
|
|
| 29,753 |
|
|
|
|
| 7,351 |
|
|
| Capital contributions from noncontrolling interest holders |
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 3,840 |
|
|
| Distributions to noncontrolling interest holders |
| — |
|
|
|
|
| — |
|
|
|
|
| (375) |
|
|
|
|
| (1,372) |
|
|
| Other financing activities |
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| (556) |
|
|
| Net cash provided by financing activities |
| 2,751 |
|
|
|
|
| 2,615 |
|
|
|
|
| 773,017 |
|
|
|
|
| 18,490 |
|
|
| Net increase (decrease) in cash, cash equivalents and restricted cash |
| (18,450) |
|
|
|
|
| 22,525 |
|
|
|
|
| 582,358 |
|
|
|
|
| 336,229 |
|
|
| Cash, cash equivalents and restricted cash at beginning of period |
| 1,138,297 |
|
|
|
|
| 514,964 |
|
|
|
|
| 537,489 |
|
|
|
|
| 201,260 |
|
|
| Cash, cash equivalents and restricted cash at end of period |
| $ |
| 1,119,847 |
|
|
|
|
| $ |
| 537,489 |
|
|
|
|
| $ |
| 1,119,847 |
|
|
|
|
| $ |
| 537,489 |
|
|
| SLACK TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands) (Unaudited) |
| Calculated Billings |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Revenue |
| $ |
| 250,598 |
|
|
|
|
| $ |
| 181,903 |
|
|
|
|
| $ |
| 902,610 |
|
|
|
|
| $ |
| 630,422 |
|
|
| Add: Total deferred revenue, end of period |
| 510,605 |
|
|
|
|
| 376,714 |
|
|
|
|
| 510,605 |
|
|
|
|
| 376,714 |
|
|
| Less: Total deferred revenue, beginning of period |
| (401,280) |
|
|
|
|
| (303,924) |
|
|
|
|
| (376,714) |
|
|
|
|
| (241,873) |
|
|
| Calculated Billings |
| $ |
| 359,923 |
|
|
|
|
| $ |
| 254,693 |
|
|
|
|
| $ |
| 1,036,501 |
|
|
|
|
| $ |
| 765,263 |
|
|
| Free Cash Flow |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Net cash provided by (used in) operating activities |
| $ |
| 15,697 |
|
|
| $ |
| 10,515 |
|
|
| $ |
| 72,439 |
|
|
| $ |
| (12,389) |
| Purchases of property and equipment |
| (551) |
|
|
| (11,350) |
|
|
| (10,232) |
|
|
| (49,626) |
| Free Cash Flow |
| $ |
| 15,146 |
|
|
| $ |
| (835) |
|
|
| $ |
| 62,207 |
|
|
| $ |
| (62,015) |
| Operating cash margin |
| 6.3% |
|
|
| 5.8% |
|
|
| 8.0% |
|
|
| (2.0)% |
| Purchases of property and equipment |
| (0.3)% |
|
|
| (6.3)% |
|
|
| (1.1)% |
|
|
| (7.8)% |
| Free Cash Flow margin |
| 6.0% |
|
|
| (0.5)% |
|
|
| 6.9% |
|
|
| (9.8)% |
| SLACK TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (In thousands, except per share data) (Unaudited) |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Reconciliation of gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
| $ |
| 215,423 |
|
|
| $ |
| 157,532 |
|
|
| $ |
| 780,918 |
|
|
| $ |
| 533,231 |
| Add: Stock-based compensation and related employer payroll taxes |
| 2,988 |
|
|
| 2,523 |
|
|
| 11,038 |
|
|
| 17,179 |
| Add: Amortization of acquired intangible assets |
| 966 |
|
|
| 558 |
|
|
| 3,186 |
|
|
| 2,233 |
| Non-GAAP gross profit |
| $ |
| 219,377 |
|
|
| $ |
| 160,613 |
|
|
| $ |
| 795,142 |
|
|
| $ |
| 552,643 |
| GAAP gross margin |
| 86.0% |
|
|
| 86.6% |
|
|
| 86.5% |
|
|
| 84.6% |
| Non-GAAP adjustments |
| 1.5% |
|
|
| 1.7% |
|
|
| 1.6% |
|
|
| 3.1% |
| Non-GAAP gross margin |
| 87.5% |
|
|
| 88.3% |
|
|
| 88.1% |
|
|
| 87.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP research and development |
| $ |
| 100,695 |
|
|
| $ |
| 93,639 |
|
|
| $ |
| 382,145 |
|
|
| $ |
| 457,364 |
| Less: Stock-based compensation and related employer payroll taxes |
| (32,802) |
|
|
| (35,212) |
|
|
| (123,291) |
|
|
| (241,071) |
| Less: Amortization of acquired intangible assets |
| — |
|
|
| (150) |
|
|
| (424) |
|
|
| (599) |
| Non-GAAP research and development |
| $ |
| 67,893 |
|
|
| $ |
| 58,277 |
|
|
| $ |
| 258,430 |
|
|
| $ |
| 215,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP sales and marketing |
| $ |
| 121,922 |
|
|
| $ |
| 103,340 |
|
|
| $ |
| 460,709 |
|
|
| $ |
| 402,780 |
| Less: Stock-based compensation and related employer payroll taxes |
| (16,258) |
|
|
| (16,715) |
|
|
| (63,619) |
|
|
| (104,503) |
| Less: Amortization of acquired intangible assets |
| (500) |
|
|
| (325) |
|
|
| (1,708) |
|
|
| (1,300) |
| Non-GAAP sales and marketing |
| $ |
| 105,164 |
|
|
| $ |
| 86,300 |
|
|
| $ |
| 395,382 |
|
|
| $ |
| 296,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP general and administrative |
| $ |
| 65,438 |
|
|
| $ |
| 51,741 |
|
|
| $ |
| 221,148 |
|
|
| $ |
| 261,365 |
| Less: Stock-based compensation and related employer payroll taxes |
| (12,553) |
|
|
| (12,544) |
|
|
| (46,286) |
|
|
| (90,711) |
| Less: Amortization of acquired intangible assets |
| (247) |
|
|
| (42) |
|
|
| (702) |
|
|
| (42) |
| Non-GAAP general and administrative |
| $ |
| 52,638 |
|
|
| $ |
| 39,155 |
|
|
| $ |
| 174,160 |
|
|
| $ |
| 170,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of loss from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP operating loss |
| $ |
| (72,632) |
|
|
| $ |
| (91,188) |
|
|
| $ |
| (283,084) |
|
|
| $ |
| (588,278) |
| Add: Stock-based compensation and related employer payroll taxes |
| 64,601 |
|
|
| 66,994 |
|
|
| 244,234 |
|
|
| 453,464 |
| Add: Amortization of acquired intangible assets |
| 1,713 |
|
|
| 1,075 |
|
|
| 6,020 |
|
|
| 4,174 |
| Non-GAAP operating loss |
| $ |
| (6,318) |
|
|
| $ |
| (23,119) |
|
|
| $ |
| (32,830) |
|
|
| $ |
| (130,640) |
| GAAP operating margin |
| (29.0)% |
|
|
| (50.1)% |
|
|
| (31.4)% |
|
|
| (93.3)% |
| Non-GAAP adjustments |
| 26.5% |
|
|
| 37.4% |
|
|
| 27.8% |
|
|
| 72.6% |
| Non-GAAP operating margin |
| (2.5)% |
|
|
| (12.7)% |
|
|
| (3.6)% |
|
|
| (20.7)% |
|
|
| Three Months Ended January 31, |
|
|
| Year Ended January 31, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Reconciliation of net loss and net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to Slack common stockholders |
| $ |
| (81,961) |
|
|
|
|
| $ |
| (89,003) |
|
|
|
|
| $ |
| (300,422) |
|
|
|
|
| $ |
| (571,058) |
|
|
| Add: Stock-based compensation and related employer payroll taxes |
| 64,601 |
|
|
|
|
| 66,994 |
|
|
|
|
| 244,234 |
|
|
|
|
| 453,464 |
|
|
| Add: Amortization of acquired intangible assets |
| 1,713 |
|
|
|
|
| 1,075 |
|
|
|
|
| 6,020 |
|
|
|
|
| 4,174 |
|
|
| Add: Amortization of debt discount and issuance costs |
| 10,631 |
|
|
|
|
| — |
|
|
|
|
| 33,691 |
|
|
|
|
| — |
|
|
| Non-GAAP net loss |
| $ |
| (5,016) |
|
|
|
|
| $ |
| (20,934) |
|
|
|
|
| $ |
| (16,477) |
|
|
|
|
| $ |
| (113,420) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net loss per share, basic and diluted |
| $ |
| (0.14) |
|
|
|
|
| $ |
| (0.16) |
|
|
|
|
| $ |
| (0.53) |
|
|
|
|
| $ |
| (1.43) |
|
|
| Add: Stock-based compensation and related employer payroll taxes |
| 0.11 |
|
|
|
|
| 0.12 |
|
|
|
|
| 0.43 |
|
|
|
|
| 1.14 |
|
|
| Add: Amortization of acquired intangible assets |
| — |
|
|
|
|
| — |
|
|
|
|
| 0.01 |
|
|
|
|
| 0.01 |
|
|
| Add: Amortization of debt discount and issuance costs |
| 0.02 |
|
|
|
|
| — |
|
|
|
|
| 0.06 |
|
|
|
|
| — |
|
|
| Non-GAAP net loss per share, basic and diluted |
| $ |
| (0.01) |
|
|
|
|
| $ |
| (0.04) |
|
|
|
|
| $ |
| (0.03) |
|
|
|
|
| $ |
| (0.28) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average common shares outstanding, basic and diluted |
| 576,258 |
|
|
|
|
| 550,444 |
|
|
|
|
| 567,152 |
|
|
|
|
| 399,461 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210304005983/en/
Jesse Hulsing
Investor Relations
ir@slack.com
Julie Mullins
Media Relations
pr@slack.com