(Reuters) — Slack Technologies’s billing growth, a key indicator of future revenue, slowed in the second quarter and owner said it took a $11 million hit in the first half due to the COVID-19 related concessions.
The company said it offered credits, payment in installments and billing duration of less than a year to help users tide over the economic downturn triggered by the health crisis, sending its shares down 18% after the bell.
Slack had in the previous quarter signaled weak demand from worst-affected industries like retail and travel, prompting it to withdraw its full-year billings target.
“In Q2, growth in many of our customers contracted or flattened versus normal seasonal trends. In August, growth began to trend at more typical seasonal levels,” Chief