Slack higher after-hours following earnings beat

Slack reported a beat on both its top and bottom line. The software company posted an adjusted loss per share of 1 cent and a revenue of $250.6M, compared to estimates of an adjusted loss per share of 3.7 cents and revenue of $250.8M. Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the key metrics.

Video Transcript

ADAM SHAPIRO: We've got to get back to Jared because Slack has reported its earnings. A lot of us use Slack. Tell us more.

JARED BLIKRE: I'm using Slack right now, and it's a beat on both their top and bottom line. So let's get straight to the numbers. Now they had an adjusted loss per share of $0.01. Wall Street was expecting a wider loss, $0.037. So that is a nice beat there. Revenue for the fourth quarter, up 250.6 million. The estimate was for about 10 million lower-- 240.8 million. And that is an increase of 38% year over year.

And a quote from the CFO here, pretty pleased with the quarter. We saw accelerating growth in new paying customers, adding 14,000 in the most recent quarter. And that's up from 5,000 in the fourth quarter of the prior year and continued success in enterprise management with paid customers, over $1 million in recurring revenue. That is up 54% year over year.

And worth noting that their merger-- potential merger-- with Salesforce still expected to go through. Not seeing any details on that right now, but let's take a look at a chart. This is over the last three months. And you see the price has kind of been pinned at this level. That's because of the merger, but it has dropped off recently. But bottom line, all the key metrics pointing to a decent beat here. And you can see the stock is up about 3/4 of a percent in after hours trading. Guys.