Exhibit 99.1

Slack Announces First Quarter Fiscal Year 2020 Results, Second Quarter Fiscal Year 2020 Guidance and Fiscal Year 2020 Full Year Guidance
Q1FY20 total revenue of $134.8 million up 67% year-over-year
SAN FRANCISCO, June 10, 2019-- Slack Technologies, Inc., the leading global collaboration hub that makes people’s working lives simpler, more pleasant and more productive, today reported financial results for its fiscal quarter ended April 30, 2019.
First Quarter Fiscal 2020 Financial Highlights:
Total revenue was $134.8 million, an increase of 67% year-over-year.
Calculated Billings was $149.6 million an increase of 47% year-over-year.
GAAP gross profit was $116.2 million, or 86.2% gross margin, compared to $70.8 million, or 87.5% gross margin, in the first quarter of fiscal year 2019. Non-GAAP gross profit was $116.9 million, or 86.7% gross margin, compared to $71.4 million, or 88.3% gross margin, in the first quarter of fiscal year 2019.
GAAP operating loss was $38.4 million, or 28% of total revenue, compared to a $26.3 million loss in the first quarter of fiscal year 2019, or 33% of total revenue. Non-GAAP operating loss was $33.8 million, or 25% of total revenue, compared to a $20.2 million loss in the first quarter of fiscal year 2019, or 25% of total revenue.
GAAP net loss per basic and diluted share was $0.26. Non-GAAP net loss per share was $0.23.
Net cash used in operations was $14.1 million, or 10% of total revenue, compared to cash provided by operations of $3.4 million, or 4% of total revenue, for the first quarter of fiscal year 2019. Free Cash Flow was $(34.2) million, or 25% of total revenue, compared to $(15.0) million, or 18% of total revenue for the first quarter of fiscal year 2019.
Recent Business Highlights:
First Quarter Highlights:
Ended the quarter with over 95,000 Paid Customers
Net dollar retention rate was 138%
The number of Paid Customers greater than $100,000 in annual recurring revenue was 645, up 84% year-over-year
Hosted annual Frontiers customer conference in San Francisco, with over 1,500 attendees.
Financial Outlook:
For the second quarter of fiscal year 2020, the Company currently expects:
Total revenue of $139 million to $141 million, representing year-over-year growth of 51% to 53%.
Non-GAAP operating loss of $77 million to $75 million, including approximately $32 million of one-time direct listing-related expenses.
Non-GAAP net loss per share of $0.20 to $0.19, assuming weighted average shares outstanding of 367.7 million.
Approximately $280 million associated with the performance-based vesting of outstanding, time-vested employee restricted stock units, or RSUs, upon the Company’s listing on the NYSE. This charge will impact GAAP operating loss and EPS, but not non-GAAP operating loss or earnings.
For the full fiscal year 2020, the Company currently expects:
Total revenue of $590 million to $600 million, representing year-over-year growth of 47% to 50%.
Non-GAAP operating loss of $192 million to $182 million, including approximately $34 million of one-time direct listing related expenses.
Non-GAAP net loss per share of $0.44 to $0.41, assuming weighted average shares outstanding of 399.9 million.
Calculated Billings of $725 million to $745 million, representing year-over-year growth of 40% to 44%.
Free Cash Flow net burn of $120 million to $105 million, including approximately $34 million of one-time direct listing-related expenses.





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 sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share. Certain of these non-GAAP financial measures exclude stock-based compensation and amortization of intangible assets.
The Company 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. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, and for budgeting and planning purposes. The Company 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 the Company’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, and 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 of the Company 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 the Company’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 the Company’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. Slack has not reconciled its outlook as to non-GAAP operating loss and non-GAAP net loss per share to their most directly comparable GAAP measure because the reconciling item stock-based compensation is out of Slack’s control and cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP operating loss and non-GAAP net loss per share is not available without unreasonable effort.
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 the Company’s financial outlook and market 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. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’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 the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on May 31, 2019 as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the Company’s recent growth rates may not be indicative of its future growth; the Company may experience quarterly fluctuations in its results of operations due to a number of factors that make its future results difficult to predict and could cause its results of operations to fall below analyst or investor expectations or to fluctuate more than expected; the Company may fail to manage its growth effectively and may be unable to execute its business plan or maintain high levels of service and customer satisfaction; real or perceived errors, failures, vulnerabilities, or bugs in Slack could harm the Company’s business, results of operations, and financial condition; a security incident may allow unauthorized access to the Company’s systems, networks, or data or the data of organizations on Slack, harm its reputation, create additional liability, and harm its financial results; any actual or perceived failure by the Company to comply





with privacy, data protection, information security, consumer privacy, data residency, or telecommunications laws, regulations, government access requests, and obligations in one or multiple jurisdictions could result in proceedings, actions, or penalties against the Company and could harm its business and reputation; the risk of interruptions or performance problems, including a service outage, associated with the Company’s technology or infrastructure; the market and software categories in which the Company participates are competitive, new, and rapidly changing, and if it does not compete effectively with established companies as well as new market entrants its business, results of operations, and financial condition could be harmed; a protracted infringement claim, a claim that results in a significant damage award, or a claim that results in an injunction could harm the Company’s results of operations; adverse general economic and market conditions; the Company’s ability to attract and retain qualified employees and key personnel; changes in foreign exchange rates; general political or destabilizing events, including war, conflict or acts of terrorism; and other risks and uncertainties. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting its Investor Relations website at investor.slackhq.com or the SEC's website at www.sec.gov.
Earnings Webcast
The Company will hold a public webcast at 2:00 p.m. PDT today to discuss the results for its first quarter fiscal 2020. The live public call can be accessed by dialing (866) 211-3197 within the U.S., and (647) 689-6597 internationally. The conference ID is 6459414. The webcast replay, and audio download will also be available on the Company's Investor Relations website at investor.slackhq.com.
About Slack
Slack is where work happens. Slack is a new layer of the business technology stack that brings together people, applications and data – a hub for collaboration where people can effectively work together, access critical applications and services, and find important information to do their best work. People around the world use Slack to connect their teams, unify their systems and drive their business forward.
- ## -
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.
CONTACTS:
Jesse Hulsing                        Karesha McGee
Investor Relations                    Media Relations
ir@slack.com                        pr@slack.com






SLACK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
Three Months Ended April 30,
 
 
2019
 
2018
Revenue
 
$
134,821

 
$
80,919

Cost of revenue
 
18,574

 
10,101

Gross profit
 
116,247

 
70,818

Operating expenses:
 
 
 
 
Research and development
 
51,103

 
35,410

Sales and marketing
 
66,838

 
42,168

General and administrative
 
36,744

 
19,568

Total operating expenses
 
154,685

 
97,146

Loss from operations
 
(38,438
)
 
(26,328
)
Other income (expense), net
 
7,077

 
1,802

Loss before income taxes
 
(31,361
)
 
(24,526
)
Provision for income taxes
 
520

 
350

Net loss
 
(31,881
)
 
(24,876
)
Net income (loss) attributable to noncontrolling interest
 
1,451

 
6

Net loss attributable to Slack common stockholders
 
$
(33,332
)
 
$
(24,882
)
Basic and diluted net loss per share:
 
 
 
 
Net loss per share attributable to Slack common stockholders, basic and diluted
 
$
(0.26
)
 
$
(0.21
)
Weighted-average shares used in computing net loss per share attributable to Slack common stockholders, basic and diluted
 
125,890

 
118,926







SLACK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 
April 30,
2019
 
January 31,
2019
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
256,489

 
$
180,770

Marketable securities
 
536,169

 
660,301

Accounts receivable, net
 
71,619

 
87,438

Prepaid expenses and other current assets
 
60,043

 
54,213

Total current assets
 
924,320

 
982,722

Restricted cash
 
38,490

 
20,490

Strategic investments
 
15,266

 
12,334

Property and equipment, net
 
94,929

 
88,359

Intangible assets, net
 
14,170

 
15,203

Goodwill
 
48,598

 
48,598

Other assets
 
31,257

 
31,250

Total assets
 
$
1,167,030

 
$
1,198,956

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
10,396

 
$
16,613

Accrued compensation and benefits
 
30,853

 
46,151

Accrued expenses and other current liabilities
 
28,225

 
29,809

Deferred revenue
 
254,908

 
239,825

Total current liabilities
 
324,382

 
332,398

Deferred revenue, noncurrent
 
1,781

 
2,048

Other liabilities
 
24,088

 
22,904

Total liabilities
 
350,251

 
357,350

Commitments and contingencies
 
 
 
 
Stockholders’ equity:
 
 
 
 
Convertible preferred stock
 
1,392,101

 
1,392,101

Common stock
 
13

 
13

Additional paid-in-capital
 
112,267

 
105,633

Accumulated other comprehensive loss
 
(78
)
 
(498
)
Accumulated deficit
 
(698,895
)
 
(665,563
)
Total Slack Technologies, Inc. stockholders’ equity
 
805,408

 
831,686

Noncontrolling interest
 
11,371

 
9,920

Total stockholders’ equity
 
816,779

 
841,606

Total liabilities and stockholders’ equity
 
$
1,167,030

 
$
1,198,956







SLACK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
Three Months Ended April 30,
 
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
Net loss
 
$
(31,881
)
 
$
(24,876
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
Depreciation and amortization
 
5,876

 
2,815

Loss on disposal of property and equipment
 

 
290

Stock-based compensation
 
3,639

 
6,118

Amortization of deferred contract acquisition costs
 
1,463

 
453

Net amortization of bond premium (discount) on debt securities available for sale
 
(1,081
)
 
(134
)
Change in fair value of strategic investments
 
(3,025
)
 

Other non-cash charges
 
37

 
153

Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
15,620

 
(88
)
Prepaid expenses and other assets
 
(6,462
)
 
(385
)
Accounts payable
 
(1,039
)
 
1,621

Accrued compensation and benefits
 
(15,298
)
 
(7,488
)
Deferred revenue
 
14,816

 
21,161

Other current and long-term liabilities
 
3,209

 
3,793

Net cash provided by (used in) operating activities
 
(14,126
)
 
3,433

Cash flows from investing activities:
 
 
 
 
Purchases of marketable securities
 
(24,907
)
 
(229,976
)
Maturities of marketable securities
 
150,686

 
209,250

Purchases of property and equipment
 
(20,077
)
 
(18,402
)
Sales of property and equipment
 

 
520

Purchase of strategic investments
 
(3,100
)
 

Proceeds from liquidation of strategic investments
 
2,858

 

Net cash provided by (used in) investing activities
 
105,460

 
(38,608
)
Cash flows from financing activities:
 
 
 
 
Proceeds from exercise of stock options
 
2,385

 
773

Repurchase of common stock
 

 
(15
)
Net cash provided by financing activities
 
2,385

 
758

Net increase (decrease) in cash, cash equivalents and restricted cash
 
93,719

 
(34,417
)
Cash, cash equivalents and restricted cash at beginning of period
 
201,260

 
138,063

Cash, cash equivalents and restricted cash at end of period
 
$
294,979

 
$
103,646






SLACK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)

Calculated Billings
 
 
Three Months Ended April 30,
 
 
2019
 
2018
Revenue
 
$
134,821

 
$
80,919

Add: Total deferred revenue, end of period
 
256,689

 
146,614

Less: Total deferred revenue, beginning of period
 
(241,873
)
 
(125,453
)
Calculated Billings
 
$
149,637

 
$
102,080


Free Cash Flow
 
 
Three Months Ended April 30,
 
 
2019
 
2018
Net cash provided by (used in) operating activities
 
$
(14,126
)
 
$
3,433

Purchases of property and equipment
 
(20,077
)
 
(18,402
)
Free Cash Flow
 
$
(34,203
)
 
$
(14,969
)







SLACK TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(In thousands, except per share data)
(Unaudited)
 
 
Three Months Ended April 30,
 
 
2019
 
2018
Reconciliation of gross profit:
 
 
 
 
GAAP gross profit
 
$
116,247

 
$
70,818

Add: Stock-based compensation
 
46

 
603

Add: Amortization of acquired intangible assets
 
558

 

Non-GAAP gross profit
 
$
116,851

 
$
71,421

 
 
 
 
 
Reconciliation of operating expenses:
 
 
 
 
GAAP research and development
 
$
51,103

 
$
35,410

Less: Stock-based compensation
 
(1,635
)
 
(3,395
)
Less: Amortization of acquired intangible assets
 
(150
)
 

Non-GAAP research and development
 
$
49,318

 
$
32,015

 
 
 
 
 
GAAP sales and marketing
 
$
66,838

 
$
42,168

Less: Stock-based compensation
 
(382
)
 
(1,204
)
Less: Amortization of acquired intangible assets
 
(325
)
 

Non-GAAP sales and marketing
 
$
66,131

 
$
40,964

 
 
 
 
 
GAAP general and administrative
 
$
36,744

 
$
19,568

Less: Stock-based compensation
 
(1,576
)
 
(916
)
Non-GAAP general and administrative
 
$
35,168

 
$
18,652

 
 
 
 
 
Reconciliation of loss from operations:
 
 
 
 
GAAP operating loss
 
$
(38,438
)
 
$
(26,328
)
Add: Stock-based compensation
 
3,639

 
6,118

Add: Amortization of acquired intangible assets
 
1,033

 

Non-GAAP operating loss
 
$
(33,766
)
 
$
(20,210
)
 
 
 
 
 
Reconciliation of net loss and net loss per share:
 
 
 
 
Net loss attributable to Slack common stockholders
 
$
(33,332
)
 
$
(24,882
)
Add: Stock-based compensation
 
3,639

 
6,118

Add: Amortization of acquired intangible assets
 
1,033

 

Non-GAAP net loss
 
$
(28,660
)
 
$
(18,764
)
 
 
 
 
 
GAAP net loss per share
 
$
(0.26
)
 
$
(0.21
)
Add: Stock-based compensation
 
0.03

 
0.05

Add: Amortization of acquired intangible assets
 

 

Non-GAAP net loss per share
 
$
(0.23
)
 
$
(0.16
)
 
 
 
 
 
Weighted-average common shares outstanding, basic and diluted
 
125,890

 
118,926



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