Slack tops Q1 expectations, ends quarter with 169,000 total paid customers

Slack said that more than half of its revenue now comes from paid customers with greater than $100,000 in annual recurring revenue. Its stock rose less than 1% on the news in extended trading.With its$27.7 billion acquisition by Salesforce still ongoing, Slack reported its first quarter financial results for fiscal 2022, beating expectations. The workplace collaboration player said it's seeing significant traction among large customers and that more than half of its revenue now comes from paid customers with greater than $100,000 in annual recurring revenue.Looking at the numbers, Slackreporteda first-quarter net loss of $27.9 million, or 5 cents per share. On a non-GAAP basis, Slack posted EPS of 8 cents on revenue of $273.4 million, an increase of 36% year-over-year.

Wall Street was expecting a non-GAAP net loss of a penny per share on revenue of $267.14 million.

Slack said it added 13,000 net new paid customers in Q1, including 102 paid customers that will generate annual recurring revenue greater than $100,000.

Slack ended the quarter with 169,000 total paid customers, up 39% year-over-year. It has more than 1,285 paid customers with greater than $100,000 in annual recurring revenue, up 33% year-over-year. It has more than 113 paid customers with greater than $1 million in annual recurring revenue, up 45% year-over-year.Slack said it has over 91,000 paid customers using Slack Connect, up from over 74,000 at the end of last quarter, with more than 950,000 connected endpoints.

"In Q1 we saw a near-record number of Paid Customer additions, a record number of Paid Customers adopting Slack Connect, and approached 1 million active developers on our platform," said Slack CEO Stewart Butterfield.

Meanwhile, Slack said its billings were $278.5 million, up 35% year-over-year. Its free cash flow at the end of Q1 was $62.7 million,  up from $3.7 million in the first quarter of fiscal 2021.