![]() ![]() Slack wants to be the home screen for your office and integrate with thousands of third-party applications to keep every aspect of an organization’s work in a single, easily visible space. “Slack is a new layer of the business technology stack thatīrings together people, applications, and data – a single place where peopleĬan effectively work together, access hundreds of thousands of criticalĪpplications and services, and find important information to do their best The company sums up its ambition in a sentence that is repeated four times throughout its S-1: Slack ultimately wants to touch every aspect of the workflow process for everyone from small businesses to multinational conglomerates. While the company still has a reputation as a messaging app for startups, Figure 1 shows that it now earns over 40% of its revenue from these mega-customers. Of customers that pay over $100 thousand annually since 2017.įigure 1: Customers Generating >$100 Thousand in Annual As Figure 1 shows, Slack has more than quadrupled the number These humble beginnings, Slack has grown into a service with over 10 millionĭaily active users in more than 500 thousand organizations, including ~2/3 of Life as an internal messaging platform for a company developing an online gameĭefunct, CEO Stewart Butterfield made Slack available to the public in 2013. ![]() (an acronym for Searchable Log of All Conversation and Knowledge) began its At the rumored valuation, the stock is priced for perfection, which gives investors little potential upside and significant potential downside. Slack has impressive growth numbers and some real competitive advantages, but it also faces significant competition as it expands the breadth of its offerings. Slack’s shares have traded at prices anywhere from $8.37 to $31.50/share since January 2018, according to their S-1, but analysts expect the company to be valued at ~$17 billion – or $28/share – after the direct listing. However, without the standard IPO “book building” provided by investment banks, direct listings endure significant uncertainty regarding the initial share price. This unconventional process – similarly utilized by Spotify (SPOT) last year – means Slack’s shares begin trading without raising any new capital for the company.ĭirect listings allow companies to gain liquidity for their stock without paying $100+ million fees to investment banks or diluting existing shareholders. Slack Technologies (WORK: $17 billion rumored valuation) plans to go public on Thursday, June 20 th through a direct listing. A copy of the associated Position Update report is here.Ĭheck out this week’s Danger Zone interview with Chuck Jaffe of Money Life. We closed this position on December 1, 2020. ![]()
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