Slack Revenues: How Does Slack Make Money?
Small and large organizations typically pay for Slack subscriptions based on the number of users they have on Slack.
Slack's Revenues Have Grown Almost 4x Over The Last Two Years, And We Expect Them To Double By 2021.
Slack Expenses: How Does Slack Spend Its Money?
Slack's Total Expenses Grew By $300 Million Between FY'17 & FY'19, While Its Revenues Grew By $295 Million
Out Of $300 Million In Expenses Added Between FY'17 & FY'19, ~$130 Million Added In Sales & Marketing, $75 Million In G&A And $60 Million in R&D
How Is Slack Differentiated?
High Engagement Levels: Paid Users Spend As Much As 90 Active Minutes A Day On Slack
Ease Of Adoption: Slack's Base Of Paid Customers Have Grown From 27% In 2015 To 38% In 2018
How Does Slack Compare With Zoom & Twilio
Slack had 88k paid customers as of Jan 2019, ahead of Zoom which had 51k customers and Twilio which had 64k paying customers at the end of 2018.
Slack's 2 year CAGR stands at about 54% over the last 2 years, compared to Zoom which grew at over 110% and Twilio which grew at 33%.
Slack Cash Flow: Look At Slack's Cash Position & Free Cash Flows
Slack had about $841 million in cash, cash equivalents and marketable securities as of Jan 2019.
While the company went public in June 2019 it didn't raise additional funds, as it went for a direct listing.
Slack Valuation: Is Slack Too Expensive Post Its IPO?
Slack went public in mid-June, with its current market cap standing at close to $19 billion.
The valuation is sizable, considering that the company's revenues stood at just about $400 million in the most recent fiscal year, with its operating losses also increasing.
What Will Slack Look Like In 5 Years?
While Slack's revenues have expanded rapidly, rising from about $100 million in 2017 to about $400 million by 2019, the company's operating losses have actually widened slightly due to mounting expenses.
In this analysis, we break down the outlook for the company over the next 5 fiscal years (FY ends January) and take a look at when Slack could break-even.
How Do Slack's Expenses Compare With Zoom & Twilio?
Slack has remained loss making since its inception, despite its rapid revenue growth, on account of its high cost base.
In this analysis, we compare Slack's key expense drivers with Zoom - a video communication platform, Twilio - a cloud communications player that enables developers to add voice, video, and messaging to their applications.