Slack missed out on $8 million in revenue last quarter after its work-communications service went down for about two hours in 92 days.
The software company, which went public in June, awarded $8.2 million worth of credits to users after it managed only 99.9% service uptime in the three months to July 31 — short of its 99.99% commitment.
“Service-level disruption of this magnitude is unusual for us,” the company’s finance chief, Allen Shim, said on Slack’s earnings call this week.
Slack’s revenue jumped 58% to $145 million last quarter. Without the credit payouts, it would have increased by 66%, Shim said. Coupled with soaring research and marketing costs and a sharp increase in overhead, Slack’s pretax losses mushroomed more than tenfold to about $364 million