🏴☠️ SLACK USD (WORK-USD)
January 12, 2021COMMUNICATIONS & NETWORKING | COMPUTERS, PHONES & HOUSEHOLD ELECTRONICS | ELECTRONIC EQUIPMENT & PARTS | OFFICE EQUIPMENT | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | SOFTWARE & IT | TELECOMMUNICATIONS
COMMUNICATIONS & NETWORKING | COMPUTERS, PHONES & HOUSEHOLD ELECTRONICS | ELECTRONIC EQUIPMENT & PARTS | OFFICE EQUIPMENT | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | SOFTWARE & IT | TELECOMMUNICATIONS
#WORK is “In Play”
Slack earnings preview – High-growth workplace collaboration software provider to issue quarterly results tonight:
On June 20, Slack (#WORK) began to trade publicly for the first time. Since the company opted to use a direct listing rather than to sell shares through investment banks, #WORK isn”t technically an IPO by definition.
Regardless, there was plenty of buzz and excitement surrounding WORK leading up to the opening trade for its stock.
The company”s workplace collaboration platform is frequently characterized as an eventual replacement for email. That”s because the capabilities of its platform are far greater than email, including the ability to communicate across team-based channels and the integration with many other applications such as Google (#GOOG), Salesforce (#CRM), and Dropbox (#DBX).
Adoption has been very strong as illustrated by its impressive high double-digit revenue growth and robust net dollar retention rate.
#WORK”s robust growth and massive addressable market opportunity generated substantial enthusiasm for its stock, leading to shares opening for trading at $38.50 vs. the expected opening price of $26. In turn, the strong opening created a meteoric valuation.
At its peak, #WORK was trading with a forward P/S of 26x estimated FY21 revenue.
Investors eventually began to scoff at the sky-high valuation, especially since its growth rates have been sliding lower. The increased volatility in the market also didn’t help matters.
As a result, the stock has gradually slid lower since its debut, hitting new lows of $28 yesterday. However, the stock is rebounding sharply higher today, up ~7% ahead of tonight”s print. The valuation is still quite rich, though, at ~19x expected FY21 revenue.
What’s Expected:
On June 10, just before its launch, #WORK reported 1Q20 results and provided guidance for Q2.
For Q1, revenue jumped by 67% to $134.8 mln, but the company still had a Non-GAAP operating loss of ($33.8) mln. Like many other cloud software companies, billings is a key demand metric for WORK. Last quarter, billings grew by ~47% to $149.6 mln.
WORK’s outlook for Q2 indicates a slowdown in growth as it estimated revenue of $139-$141 mln, equating to growth of 51-53%. It also guided for a Non-GAAP loss per share of ($0.20)-($0.19). Analysts forecasts are slightly better than WORK”s guidance at EPS of ($0.18) on revenue of $141.3 mln.
The company will also likely provide an updated outlook for FY20. In its Q1 report, it said it expects to generate revenue of $590-$600 mln (+47-50%), billings of $725-$745 mln (+40-44%), and Non-GAAP loss per share of ($0.44)-($0.41).
#WORK is “In Play”
Slack beats by $0.04, beats on revenue, guides Q3 EPS below consensus, revenue above consensus; guides FY20 EPS inline, revenue above consensus:
– Reports Q2 (Jul) loss of ($0.14), $0.04 better than the S&P Capital IQ Consensus of ($0.18); revenue rose 58% yr/yr to $145.0 mln vs. the $141.3 mln S&P Capital IQ Consensus.
– Calculated Billings was $174.8 mln, an increase of 52% yr/yr.
– Co ended the quarter with over 100,000 Paid Customers, up 37% yr/yr.
– Reports net dollar retention rate of 136%.
– Co issues mixed guidance for Q3, sees EPS of ($0.09)-($0.08) vs. the ($0.07) S&P Capital IQ Consensus, revenue of $154-$154 mln vs. the $153.6 mln S&P Capital IQ Consensus.
– Co issues mixed guidance for FY20, sees EPS of ($0.42)-($0.40) vs. the ($0.40) S&P Capital IQ Consensus, revenue of $603-$610 mln vs. the $600.9 mln S&P Capital IQ Consensus.
#WORK has reported earnings of -0.14 per share per share.
#WORK has been reiterated by Monness Crespi & Hardt as a buy at 41.0
#WORK Q2 earnings of -$0.140 have been announced, beating analyst estimates by $0.043.
Reset #WORK Alerts: High = 29.6968 & Low = 23.3332.
#WORK is “In Play”
Slack, Smartsheet and MongoDB leading high-multiple software stocks lower following underwhelming, albeit strong results while value-oriented Cloudera, SecureWorks and Palo Alto lead the sector higher following earnings:
– Value oriented software stocks: #CLDR +16.16% (~2x sales) #SCWX +13.15% (~2x sales) #PANW +5.93% (~18x FCF):
– – Software leaders: #TDOC +4.97% #PFPT +4.32% #CRTO +4.16% #NTNX +3.81% #PS +3.08% #SQ +3.19% #LOGM +3.07% #DBX +2.91% #SWI +2.89% #ADSK +2.85% #UBER +2.74% #ORCL +2.43%
– High multiple software stocks: #WORK -111.81% (~20x sales) #SMAR -9.62% (~16x sales) #MDB -7.14% (~20x sales):
– – Software laggards: #MTCH -5.87% (getting hit on #FB competition concerns) #ZS -5.88% #APPN -3.36% #UPWK -3.87% #ZM -3.59% #ROKU -3.26% #CDAY -3.71% #CHGG -2.71% #OKTA -2.68% #ETSY -1.50% #HUBS -2.03%
Reset #WORK Alerts: High = 30.6656 & Low = 24.0944.
Reset #WORK Alerts: High = 29.9600 & low = 23.5400.
#WORK has been initiated by Mizuho as a neutral at 26.0.
RESET #WORK ALERTS: HIGH = 25.9840 & LOW = 20.4160.
#WORK is “In Play”
Slack leading software stocks higher following Barron”s recommendation:
Leaders: WORK +3.97% SHOP +2.92% HCAT +2.85% LVGO +2.35% GWRE +2.25% ROKU +1.90% CRWD +2.26% TEAM +1.91% FSLY +2.03% FTCH +1.83% APPN +1.75%
Laggards: EGHT -3.77% PINS -3.32% TENB -3.08% SWI -2.78% MDLA -2.73% ZIXI -1.74% SNAP -1.72% NTNX -1.70% TLND -1.56% UPWK -1.58% MTCH -1.75%
WORK has been reiterated by Morgan Stanley as a equal-weight at 28.0.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK, (Trade) has been initiated by Piper Jaffray as a overweight.
Acquired SLACK USD (WORK-USD). via ROBINHOOD at approximately 22.43. (Shares: 1) bringing the Average Price Paid (APP) to about 22.43.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS “IN PLAY”
Adjusted Buy Stop to 20.31. from 22.12.
Acquired at approximately 22.12. (Shares: 1) bringing the Average Price Paid (APP) to about 22.275.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS IN PLAY
Adjusted Buy Stop to ASSESSING. from 20.31.
Adjusted Sell Stop to 22.40. from ASSESSING.
Acquired at approximately 20.31. (Shares: 1) bringing the Average Price Paid (APP) to about 21.62.
Transferred 100% of Trade Money to Investment Money (Shares: 3) bringing the Average Price Paid (APP) to about 21.62.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS IN PLAY
Adjusted Multiplier to 12. from 1.
Adjusted Buy Stop to 22.63. from ASSESSING.
Adjusted Sell Stop to ASSESSING. from 22.40.
Converted 100% of Investment/Trade Money at approximately 22.40. (Shares: 3) generating about +3.6078% of NEW Commission FREE Cash Reserve.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS IN PLAY
Slack beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line
Reports Q3 (Oct) loss of $0.02 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of ($0.08); revenues rose 59.8% year/year to $168.7 mln vs the $156.14 mln S&P Capital IQ Consensus.
Calculated Billings was $186.1 million, an increase of 47% year-over-year. Ended the quarter with over 105,000 Paid Customers, up 30% year-over-year. Net dollar retention rate was 134%. The number of Paid Customers with greater than $100,000 in annual recurring revenue was 821, up 67% year-over-year. The number of Paid Customers with greater than $1 million in annual recurring revenue exceeded 50 for the first time.
Co issues in-line guidance for Q4, sees EPS of ($0.07-0.06), excluding non-recurring items, vs. ($0.07) S&P Capital IQ Consensus; sees Q4 revs of $172-174 mln vs. $173.02 mln S&P Capital IQ Consensus.
WORK, (Trade) has reported earnings of -0.02 per share per share.
Adjusted Buy Stop to 21.83. from 22.63.
Acquired at approximately 22.63. (Shares: 12) bringing the Average Price Paid (APP) to about 22.63.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS IN PLAY
Adjusted Buy Stop to 20.90. from 21.83.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
WORK IS IN PLAY
Adjusted Buy Stop to 21.11. from 20.90.
Acquired at approximately 20.90. (Shares: 12) bringing the Average Price Paid (APP) to about 21.765.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.89. from 21.11.
Acquired at approximately 21.11. (Shares: 12) bringing the Average Price Paid (APP) to about 21.5467.
Transferred 100% of Trade Money to Investment Money (Shares: 36) bringing the Average Price Paid (APP) to about 21.5467.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.63. from 21.89.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.36. from 21.63.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.44. from 21.36.
Acquired at approximately 21.36. (Shares: 12) bringing the Average Price Paid (APP) to about 21.36.
Transferred 100% of Trade Money to Investment Money (Shares: 12) bringing the Average Price Paid (APP) to about 21.5.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.43. from 21.43.
Acquired at approximately 21.43. (Shares: 12) bringing the Average Price Paid (APP) to about 21.43.
Transferred 100% of Trade Money to Investment Money (Shares: 12) bringing the Average Price Paid (APP) to about 21.486.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 21.70. from 21.43.
Acquired at approximately 21.43. (Shares: 12) bringing the Average Price Paid (APP) to about 21.43.
Transferred 100% of Trade Money to Investment Money (Shares: 12) bringing the Average Price Paid (APP) to about 21.4767.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to ASSESSING. from 21.70.
Acquired at approximately 21.70. (Shares: 12) bringing the Average Price Paid (APP) to about 21.70.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 23.38. from ASSESSING.
Adjusted Sell Stop to 22.75. from ASSESSING.
Transferred 100% of Investment Money to Trade Money (Shares: 72) bringing the Average Price Paid (APP) to about 21.5086.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Multiplier to 13. from 12.
Adjusted Buy Stop to 23.15. from 23.38.
Adjusted Sell Stop to ASSESSING. from 22.75.
Acquired at approximately 23.38. (Shares: 12) bringing the Average Price Paid (APP) to about 23.38.
Converted 100% of Investment/Trade Money at approximately 22.75. (Shares: 84) generating about +5.7717% of NEW Commission FREE Cash Reserve.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 27.40. from 23.15.
Acquired at approximately 23.15. (Shares: 13) bringing the Average Price Paid (APP) to about 23.2604.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Multiplier to 34. from 13.
Adjusted Buy Stop to 29.24. from 27.40.
Adjusted Sell Stop to 26.12. from ASSESSING.
Acquired at approximately 27.40. (Shares: 13) bringing the Average Price Paid (APP) to about 24.6766.
OPTIONS ASSESSMENT:
WORK JAN 21 2022 $40.00 CALL
WORK JAN 21 2022 $3.00 PUT
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
Adjusted Buy Stop to 29.24. from 29.24.
Adjusted Sell Stop to 26.12. from 26.12.
Acquired at approximately 29.24. (Shares: 34) bringing the Average Price Paid (APP) to about 29.24.
Transferred 100% of Trade Money to Investment Money (Shares: 38) bringing the Average Price Paid (APP) to about 24.6766.
OPTIONS ASSESSMENT:
WORK JAN 21 2022 $3.00 PUT
WORK JAN 21 2022 $40.00 CALL
https://www.facebook.com/groups/493863300973045/permalink/859057307786974/
#WORK IS IN PLAY
If you like to make money, then do what I do; not what I say
Adjusted Multiplier to 37. from 34.
Adjusted Buy Stop to 26.94. from 29.24.
Adjusted Sell Stop to ASSESSING. from 26.12.
Acquired at approximately 29.24. (Shares: 34) bringing the Average Price Paid (APP) to about 29.24.
Transferred 100% of Trade Money to Investment Money (Shares: ASSESSING) bringing the Average Price Paid (APP) to about ASSESSING.
Converted 100% of Investment/Trade Money at approximately 26.12. (Shares: 38) generating about +5.8493% of NEW Commission FREE Cash Reserve.
OPTIONS ASSESSMENT:
WORK JAN 21 2022 $3.00 PUT
WORK JAN 21 2022 $40.00 CALL
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
If you like to make money, then do what I do; not what I say
Adjusted Multiplier to 36. from 37.
Adjusted Buy Stop to ASSESSING. from 26.94.
Adjusted Sell Stop to ASSESSING. from ASSESSING.
Acquired at approximately 26.94. (Shares: 37) bringing the Average Price Paid (APP) to about 28.4295.
Transferred 100% of Trade Money to Investment Money (Shares: ASSESSING) bringing the Average Price Paid (APP) to about ASSESSING.
Converted 100% of Investment/Trade Money at approximately ASSESSING. (Shares: ASSESSING) generating about +ASSESSING% of NEW Commission FREE Cash Reserve.
OPTIONS ASSESSMENT:
WORK JAN 21 2022 $3.00 PUT
WORK JAN 21 2022 $40.00 CALL
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 25.089533. from 36.000000.
Buy Stop Limit (BSL) to 39.86. from ASSESSING.
Sell Stop Limit (SSL) to 37.59. from ASSESSING.
Converted Trade (T) to Investment (I) (Share: 105) bringing the Average Price Paid (APP) to about 28.43.
Just to reiterate, I placed the following order(s):
+ Buy 25. Shares @ 39.86; Limit: 39.86. & Stop: 39.85.
– Sell 105. Shares @ 37.59; Limit 37.59. & Stop: 37.60.
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 37.252581. from 25.089533.
Buy Stop Limit (BSL) to 31.02. from 39.86.
Sell Stop Limit (SSL) to 29.62. from 37.59.
Just to reiterate, I placed the following order(s):
+ Buy 37. Shares @ 31.02; Limit: 31.02. & Stop: 31.01.
– Sell 105. Shares @ 29.62; Limit 29.62. & Stop: 29.63.
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 33.868676. from 37.252581.
Buy Stop Limit (BSL) to ASSESSING. from 31.02.
Sell Stop Limit (SSL) to 33.15. from 29.62.
Converted Cash Reserve (CR) to Trade (T) at approximately 31.02. (Share: 37) bringing the Average Price Paid (APP) to about 31.02.
Converted Trade (T) to Investment (I) (Share: 37) bringing the Average Price Paid (APP) to about 29.10.
Just to reiterate, I placed the following order(s):
– Sell 142. Shares @ 33.15; Limit 33.15. & Stop: 33.16.
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 50.520698. from 33.868676.
Buy Stop Limit (BSL) to 34.24. from ASSESSING.
Sell Stop Limit (SSL) to ASSESSING. from 33.15.
Converted Investment (I) to Cash Reserve (CR) at approximately 33.15. (Share: 142) generating about +13.92% ROI (Return on Investment).
Just to reiterate, I placed the following order(s):
+ Buy 50. Shares @ 34.24; Limit: 34.24. & Stop: 34.25.
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 60.171460. from 50.520698.
Buy Stop Limit (BSL) to 28.75. from 34.24.
Converted Cash Reserve (CR) to Trade (T) at approximately 34.24. (Share: 50) bringing the Average Price Paid (APP) to about 34.24.
Just to reiterate, I placed the following order(s):
+ Buy 60. Shares @ Limit Price: 28.75.
https://www.facebook.com/groups/493863300973045/?post_id=859057307786974
#WORK IS IN PLAY
Multiplier (X) to 30.297262. from 60.171460.
Buy Stop Limit (BSL) to 33.01. from 28.75.
Sell Stop Limit (SSL) to 32.10. from ASSESSING.
Converted Cash Reserve (CR) to Trade (T) at approximately 28.75. (Share: 60) bringing the Average Price Paid (APP) to about 31.2455.
Converted Trade (T) to Investment (I) (Share: 110) bringing the Average Price Paid (APP) to about 31.2455.
Just to reiterate, I placed the following order(s):
+ Buy 30. Shares @ Limit Price: 33.01.
– Sell 110. Shares @ Limit Price: 32.10.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974
#WORK IS IN PLAY
Multiplier (X) to 24.636017. from 30.297262.
Buy Stop Limit (BSL) to ASSESSING. from 33.01.
Sell Stop Limit (SSL) to 37.34. from 32.10.
Converted Cash Reserve (CR) to Trade (T) at approximately 33.01. (Share: 30) bringing the Average Price Paid (APP) to about 33.01.
Converted Trade (T) to Investment (I) (Share: 30) bringing the Average Price Paid (APP) to about 33.01.
Converted Investment (I) to Cash Reserve (CR) at approximately 32.10. (Share: 110) generating about +2.73% ROI (Return on Investment).
Just to reiterate, I placed the following order(s):
+ Sell 30. Shares @ Limit Price: 37.34.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974
#WORK IS IN PLAY
Multiplier (X) to 23.124024. from 24.636017.
Buy Stop Limit (BSL) to 43.25. from XXXX.
Sell Stop Limit (SSL) to 42.21. from 37.34.
Just to reiterate, I placed the following order(s):
+ Buy 23. Shares @ Limit Price: 43.25.
+ Sell 30. Shares @ Limit Price: 42.21.
https://www.facebook.com/groups/493863300973045/permalink/859057307786974
#WORK IS IN PLAY
Multiplier (X) to 23.678196. from 23.124024.
Buy Stop Limit (BSL) to 42.16. from 43.25.
Sell Stop Limit (SSL) to XIIMM. from 42.21.
Converted Cash Reserve (CR) to Trade (T) at approximately 43.25. (Share: 23) bringing the Average Price Paid (APP) to about 43.25.
Converted Investment (I) to Cash Reserve (CR) at approximately 42.21. (Share: 30) generating about +27.87% ROI (Return on Investment).
Just to reiterate, I placed the following order(s):
+ Buy 23. Shares @ Limit Price: 42.16.
Data:
http://xiimm.net/collective/2021/01/12/slack-usd-work-usd/
Graphics:
http://xiimm.net/collective/work/