#Slack stock price software#

Relatively flat, ranging between $138 million to $146 million for all three

International represents one-third of the revenue. To $400 million in 2019 representing growth of 110% and 82% respectively. Revenue grew from about $105 million in 2017 to $220 million in 2018 Prospectus reports “good enough” financials that will satisfy most growth If this number is not improving, then Slack should be raising money to expand its reach. In addition, we see in the financials that Slack’s cost of user acquisition with around 50-60% of revenue spent on sales and marketing over the last two years. Slack has 10 million customers which is not much considering Microsoft is already in the lead and some startups may nip on their heels such as Asana.

#Slack stock price software#

In addition, Slack has partnered with other collaborativeĬloud software products, such as Atlassian and Oracle, but both of theseĬompanies are much larger than Slack and are able to copy what Slack offers. Microsoft globally (Microsoft is technically in the lead, according to Gartner andĪ few other sources). Money with the level of competition the company is currently facing from Issue with a direct listing for Slack is that the company should be raising

Was too high at $185 and is now priced at $127. You can read my analysis on Spotify stock here when I said the stock Is quite a bit of information about Slack’s direct listing available, as wellĪs Spotify’s direct listing, and therefore, I will not go into an exhaustiveĪnalysis of the pros and cons (there are primarily cons for public market Eliminating the lock-up periodĬreates even more risk than usual compared to traditional IPOs that have Their stock and there will be no lock-up period. Is not looking to raise money, and has chosen a direct listing as opposed to a Slack currently holds the title of fastest-growing SaaS Slack IPO Pro: The Product is AwesomeĪnd foremost, Slack is an exceptional product in a high-growth category and hasĪ loyal user base. You can read my analysis on Spotify here – which also had a direct listing. Net dollar retention rate is strong with Slack, although it has the benefit of being a fairly young company with the product having launched in 2014, and this puts the retention rate in Slack’s favor compared to prior IPOs in the same category. Ideally, these two metrics would both be in an uptrend.

The financials also reveal paid users are decreasing even though paid accounts over $100,000 are increasing. One paramount issue is that direct listings are risky as there is no lock-up period and this didn’t go well for Spotify. Setting aside my affection for Slack (I’m logged in on two separate accounts as I write this), there are a couple of issues that require more visibility. Keep in mind, we saw the fragile ground cloud software companies are on with Zuora, which reported disappointing earnings resulting in an overnight loss of 30% in value with stock price dropping from $20 to $14 on May 31 st. Notably, Class B shares are trading privately between $21 and $31.50 over the past four months with a volume weighted average of $26.38, which represents a 142% increase in value from the last private valuation of $7 billion in August of 2018. By simply breathing the same air as the cloud software vertical, Slack is likely to see a healthy bump when the company officially begins to trade. IPOs in the cloud software category have been especially rewarding over the last two years with PagerDuty, Okta, Twilio, Zoom and a few others trading at triple percentages from their IPO price. Cloud software has carried the Nasdaq rally from December lows with some cloud software stocks seeing 100% returns compared to 13% on average from mega-cap FANG stocks over the last six months. Prior to the Slack IPO (or DPO to be exact), I had cautioned that cloud software is pricey right now and is breaking records from the dot-com era on price-to-sales ratios. With that said, there will be plenty of product bias on this stock from Slack power users. From a customer perspective, the cost of the paid product is offset by the time employees save by eliminating collaboration friction such as long email threads and lost files. The product is simply amazing in terms of productivity and team work flow. You can think of Slack as a cloud-based messaging and delivery hub for teams as email is ineffective for frequent communication and projects. Of the cloud software companies to go public over the last few years, Slack may be Silicon Valley’s pet favorite. June 20 th is the official date of the Slack IPO, although the technical term is not an IPO but rather a DPO for Direct Public Offering. Share this: Share on Facebook Share on Twitter Share on Linkedin Share on Reddit