Slack has reported its earnings results for the first quarter of its fiscal year for 2021 with a revenue of $201.7 million, up by 50% compared to last year same period. They also reported an adjusted per-share loss of $0.02, and per-share losses of $0.13 when counting all costs. Analysts have expected the company to lose $0.06 per share against $188.12 million in revenue.

Right after its earnings report, shares of the company are off around 13%, as it seems like investors had expected the firm to be more aggressive in exceeding expectations and anticipated better results.

The expectations were due to previously discussed growth caused by the COVID-19 pandemic, wherein more organizations bought software services to allow their workers to work remotely.

The boom in usage was announced Slack, reporting that it “added a record of over 90,000 net new organizations on either a free or paid subscription plan.” Also based on its earnings release, Slack added 12,000 net new customers in the same period. With this, the investors had expected the company to sign up more paid plans instead of free plans, to have earned more revenue in the quarter.

However, regardless of the market’s reaction to this reported quarter, Slack is well-capitalized, since they sold $750 million in convertible senior notes, adding capital to their balance sheets at a slim interest rate of 0.50%. Also, some good news in their report include their revenue growth accelerated compared to the previous quarter’s, its 132% net retention rate, and the firm GAAP gross margin improved to 87.3%.

Hopefully, the company will still see their revenue growth accelerate since investors still expect more revenue growth acceleration compared to what was seen in their report.

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