Slack recently filed to go public, with an IPO expected in the coming weeks.
is a technology company that allows customers to use its online platform and app for business communication, file sharing and messaging, which is mainly used by teams in a work environments. There are comparable products by Cisco, Google and Microsoft that compete with Slack. There are recent reports indicating that Amazon or Microsoft are considering an acquisition for Slack, estimated in the range of $8-10 billion. There are also some reports suggesting an IPO for the company this year. In the most recent round of funding in September 2017, Slack raised $250 million at a $5.1 billion valuation.
This Trefis Valuation Model estimates the fair value for Slack to be $8.3 billion by the end of the year using just 5 core metrics for the company:Daily Active Users:
This is the total number of daily active users (DAUs) on Slack's platforms. This includes both paying and free users.Paying Users:
This is the total number of paid users on Slack's platforms. In many cases, the fees is paid by an organization for all members of their teams to use Slack on a per seat per month basis. Revenue (ARR Basis):
This is the total revenue on an annualized run rate basis reported by Slack at intermittent intervals in the last three years.Revenue Per Sear Per Month:
We arrive at this metric by dividing Slack's total revenue (ARR basis) by the total paying customers at that time and further dividing that by 12 to get implied monthly fee.Price-to-Sales Ratio:
We use a Price-to-Sales Ratio (or Revenue Multiple) of 17 for Slack as detailed below.
Don't agree with our estimates? Feel free to make your own changes to any of the core metrics below by dragging the blue dots in the charts. It should be noted that the time intervals shown in the charts below are not evenly spaced because the company-reported data as well as other publicly available data points are from intermittent periods rather than regular time intervals.