Slack Technologies Inc (NYSE:WORK) Q2 2021 Earnings Conference Call - Final Transcript

Sep 08, 2020 • 05:00 pm ET

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Slack Technologies Inc (NYSE:WORK) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Slack Technologies Second Quarter Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jesse Hulsing, Vice President of Finance and Investor Relations. Thank you. Please go ahead.

Executive
Jesse Hulsing

Good afternoon, and thank you for joining us on today's conference call to discuss Slack's second quarter of fiscal 2021 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. We will also make forward-looking statements regarding the potential impact of the global COVID-19 pandemic on US and global economies and our business. 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 the company's SEC filings, earnings press release and supplemental information posted on the Investors section of 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 an 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

Thank you everyone for joining. I want to highlight three key areas of continued execution against our highest priorities, those which you heard me talk about on the last two calls, along with comments on macro-related headwinds we are seeing in the installed base and what we are doing about it.

I'll discuss Slack Connect, where we're seeing the emergence of a genuine network effect which is already impacting new customer acquisition, along with the continued success of our enterprise business as highlighted through recent customer wins.

But let me start with what I'm most excited about and that's accelerating growth in new paid customers. This is the fundamental driver of the entire business, from compounding expansion on the self-serve side to the most valuable source of enterprise pipeline. Net new paid customer adds grew at a faster rate in June and July compared to April and May. That trend continued in August, even after the typical vacation-related slowdown for the month, indicating that paid customer additions are potentially finding a new