Slack’s service went down for about 2 hours last quarter — and it cost $8 million in sales

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

Article URL : https://markets.businessinsider.com/news/stocks/slack-takes-8-million-revenue-hit-2-hours-service-downtime-2019-9-1028500931

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