Slack (NYSE: WORK) reported Q4 EPS of ($0.04), $0.01 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $181.9 million versus the consensus estimate of $174.14 million.

Fourth Quarter Fiscal 2020 Financial Highlights:

• Total revenue was $181.9 million, an increase of 49% year-over-year.
• Calculated Billings was $254.7 million, an increase of 47% year-over-year.
• GAAP gross profit was $157.5 million, or 86.6% gross margin, compared to $105.7 million, or 86.6% gross margin, in the fourth quarter of fiscal year 2019. Non-GAAP gross profit was $160.6 million, or 88.3% gross margin, compared to $106.3 million, or 87.1% gross margin, in the fourth quarter of fiscal year 2019.
• GAAP operating loss was $91.2 million, or 50.1% of total revenue, compared to a $43.4 million loss in the fourth quarter of fiscal year 2019, or 35.6% of total revenue. Non-GAAP operating loss was $23.1 million, or 12.7% of total revenue, compared to a $37.5 million loss in the fourth quarter of fiscal year 2019, or 30.8% of total revenue.
• GAAP net loss per basic and diluted share was $0.16. Non-GAAP net loss per share was $0.04.
• Net cash provided by operations was $10.5 million, or 6% of total revenue, compared to cash used in operations of $17.6 million, or 14% of total revenue, for the fourth quarter of fiscal year 2019. Free Cash Flow was $(0.8) million, or 0% of total revenue, compared to $(31.1) million, or 25% of total revenue for the fourth quarter of fiscal year 2019.

“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, Chief Executive Officer 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.”

"We finished the year with 110,000 paid customers and 893 customers spending more than $100,000 annually with Slack," said Allen Shim, Chief Financial Officer at Slack. "Slack has created a new category of enterprise software and companies large and small are choosing us to enable a better way of working, with unique-to-Slack features including shared channels and Workflow Builder. While we invest in innovation and delivering more value to our customers, we also are showing significant leverage and remain on track to hit our growth phase target of free cash flow positive.”

GUIDANCE:

Slack sees Q1 2021 EPS of ($0.07)-($0.06), versus the consensus of ($0.07). Slack sees Q1 2021 revenue of $185-188 million, versus the consensus of $188.37 million.

Slack sees FY2021 EPS of ($0.21)-($0.19), versus the consensus of ($0.21). Slack sees FY2021 revenue of $842-862 million, versus the consensus of $854.45 million.

For the first quarter of fiscal year 2021, Slack currently expects:

• Total revenue of $185 million to $188 million, representing year-over-year growth of 37% to 39%.
• Non-GAAP operating loss of $42 million to $38 million.
• Non-GAAP net loss per share of $0.07 to $0.06, assuming weighted average shares outstanding of 557 million.

For the full fiscal year 2021, Slack currently expects:

• Total revenue of $842 million to $862 million, representing year-over-year growth of 34% to 37%.
• Non-GAAP operating loss of $130 million to $120 million.
• Non-GAAP net loss per share of $0.21 to $0.19, assuming weighted average shares outstanding of 566 million.
• Calculated Billings of $970 million to $1 billion, representing year-over-year growth of 27% to 31%.
• Free Cash Flow of negative $20 million to break even.

For earnings history and earnings-related data on Slack (WORK) click here.