Slack’s great earnings aren’t good enough for Wall Street

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Think of the market these days as a perpetual confusion machine. Much has been made of the dichotomy between robust valuations for stocks and the sorry state of the world.

For further confirmation, check out the reaction to the earnings report Slack released Thursday for its quarter that ended in April. The messaging company is much in the news, what with office workers having been sent home. Its stock price has been on a tear, as has its business, which has notably been pitted against a product from Microsoft called Teams. (A digression on stock tickers: TEAM is the ticker for a different collaboration-software company called Atlassian; Slack’s ticker is WORK; Zoom’s ticker isn’t ZOOM, but rather ZM; Salesforce’s symbol, CRM, for customer relationship software, must have seemed really clever years ago.)

As for Slack, it added 12,000 new paid customers, a big number. It lost money, as fast-growing tech companies are wont to do, but it added cash quarter over quarter, a good thing. It grew revenue 50% to just over $200 million.

Here’s the catch: The revenue growth was about the same as the previous quarter despite a month and half of sheltering in place. Investors expected better. Slack’s stock slumped. It’s down 17% in pre-market trading now.

Sometime bad doesn’t matter and good isn’t good enough.

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The Abu Dhabi sovereign wealth fund Mubadala is investing $1.2 billion in Jio Platforms, the Indian cell-phone carrier owned by petrochemical giant Reliance Industries. You need a scorecard to tally the recent investors in Jio: Facebook, KKR, Vista Equity, Silver Lake, and General Atlantic.

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It has become popular for companies to publish their commitment to racial justice. Fortune is starting a project to track the experiences of black employees inside those companies. Please submit your anonymous thoughts and anecdotes here.

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Also, my friend and former colleague Dan Primack is hosting a Peloton ride Saturday morning at 8:00 am PT/11:00 am ET to raise money for the NAACP Legal Defense and Education Fund. The on-demand session is the 45-minute Black History Month ride from Feb. 8 co-led by Alex Toussaint and Tunde Oyeneyin. More details, including how to donate, are here. I’ll be on the ride. If you can figure out my handle, please high five me.

Adam Lashinsky

@adamlashinsky

[email protected]

This edition of Data Sheet was curated by Aaron Pressman.



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