Slack Technologies Inc (NYSE:WORK) Q2 2020 Earnings Conference Call Transcript

Sep 04, 2019 • 05:00 pm ET

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Slack Technologies Inc (NYSE:WORK) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, my name is Gabriel and I will be your conference operator today. At this time, I'd like to welcome everyone to the Slack Technologies Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks,, there will be a question-and-answer session. [Operator Instructions] Thank you.

Mr. Jesse Hulsing, you may begin your conference.

Executive
Jesse Hulsing

Thank you. Good afternoon and thank you for joining us on today's conference call to discuss Slack's second quarter fiscal 2020 financial results. On the call we have Stewart Butterfield, Co-Founder and Chief Executive Officer and Allen Shim, Chief Financial Officer.

During the course of today's call, we may make forward-looking statements including but not limited to statements regarding our guidance and future financial performance, market demand, product development, growth prospects, business strategies and plans, ability to attract and retain customers and ability to compete effectively.

These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date and we disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements, information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are contained in our SEC filings, earnings press release and supplemental information posted on the Investor Section on the Company's website.

Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from GAAP measures. Our non-GAAP measures exclude the effect of our GAAP results of stock-based compensation and certain other items. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures in our earnings release and on our Investor Relations website at investor.slackhq.com.

I would now like to turn the conference call over to Slack's Co-Founder and Chief Executive Officer, Stewart Butterfield. Stewart?

Executive
Stewart Butterfield

Thanks, Jesse. We had a quarter of record results with revenue growing 58% year-on-year. We exceeded 100,000 paid customers in the quarter and now have 720 customers with more than $100,000 of annual recurring revenue, a figure, which was up 75% since last year. I'll talk more about our exceptional growth in the enterprise segment in a moment.

Last quarter, of course, we also completed our listing process. I want to acknowledge the strength of execution by our accounting, legal, finance, business technology and communications departments, along with hundreds of others across the company, and of course, our partners and advisors. The transition to being a public company is just one hallmark of what we see as the company entering a new phase. The next 5 years will be very different from the first 5 years. We came out of the gate with near-perfect product-market fit for a very earliest customers who tended to be smaller and more technical teams. But over the years as we launched the Enterprise Grid product, scaled the teams of over 100,000 users,