Shares of Slack (NYSE: WORK) tanked yesterday after the company reported fiscal second-quarter results on Tuesday. As a quick refresher, billings is calculated as revenue minus the change in deferred revenue and essentially represents sales to new customers in addition to renewals or upsells to existing clients, which isn't recognized as revenue up front due to the subscription nature of those customer relationships. Strong billings growth will contribute to higher deferred revenue, which is a pipeline for revenue that will be booked in future periods but the company has already collected cash for. Read More...
What’s Driving Slack’s Billings Deceleration?
Shares of Slack (NYSE: WORK) tanked yesterday after the company reported fiscal second-quarter results on Tuesday. As a quick refresher, billings is calculated as revenue minus the change in deferred revenue and essentially represents sales to new customers in addition to renewals or upsells to existing clients, which isn’t recognized as revenue up front due to the subscription nature of those customer relationships. Strong billings growth will contribute to higher deferred revenue, which is a pipeline for revenue that will be booked in future periods but the company has already collected cash for.
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