![]() "If we add back the one-time disruption, guidance for Q3 revenue shows anemic growth, which we believe contributed to the stock's pre-market drop of ~14%," Bernstein analysts Mark Moerdler and Firoz Valliji, who have the equivalent of a hold rating on Slack, wrote in a Thursday note to clients. On the downside, if Slack's revenue hit from outages was truly a one-time occurrence, that means it's growing slower than some analysts expected. And so any disturbance in availability, it causes big problems," Butterfield said on Wednesday. "We've put a lot more tooling in place, a lot more automated testing and we definitely have a commitment because we feel it, we understand, we are among the heaviest Slack users ourselves. Users on the platform could not send or receive messages, upload files, join channels, and were completely shut out from the desktop application. This is the first significant outage suffered by Slack in 2022. Last year Slack formed a team tasked with making them less frequent, Reuters reported. On Tuesday, the business communication platform suffered a service outage at 9:25 AM EST. ![]() Often they take to social media to commiserate. These events aren't exactly a secret, because people use Slack to communicate with their colleagues at work. Outages can be caused by scheduled downtime for maintenance, performance issues or problems with Slack's third-party providers, like Amazon Web Services. Slack warned in the prospectus for its direct listing earlier this year that "paid customers could elect to terminate and receive refunds for prepaid amounts related to unused subscriptions" if it fails to meet service commitments. If Slack does not get its outage problem under control, customers could defect to competing services, like Microsoft's Teams. In 2018, Slack's uptime was below the key 99.99% level for seven out of 12 months, according to the company's online tracker. A historical problemīut Slack's outages last quarter have a historical precedent. "Management seemed comfortable saying that this was truly a one-time issue," he wrote in a Thursday note. Rohit Kulkarni of MKM Partners, with a buy rating on Slack, also expressed confidence that Slack would do better going forward. Morgan Stanley analysts led by Keith Weiss wrote in a Thursday note that the changes should mean lower hits to revenue from outages in the quarters to come. Most analysts are taking Slack at its word. "If we had the same SLA as Salesforce or Microsoft or any of our peers in the industry, we wouldn't have paid out anything because we would have hit the three nines they're committed to," he said. ![]() Slack's CEO, Stewart Butterfield, reiterated that the company is more generous to customers than its big competitors. "We've adjusted those terms to be more in line with industry standards, while still remaining very customer friendly." "Compounding the financial impact of the downtime was an exceptionally generous credit payout multiplier in our contracts dating from when we were a very young company," Shim said. Personal Loans for 670 Credit Score or LowerĮven if the outages continue, the revenue crunch should be less pronounced going forward, as Slack has changed its policies on credits. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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