Slack
- In a presentation to Wall Street on Monday, Slack’s chief financial officer promised continued growth and a total market opportunity of $28 billion for the office communication company, which is set to go public in the upcoming weeks.
- In the presentation, CFO Allen Shim showed statistics on Slack’s continued growth and customer acquisition.
- Slack also gave guidance for its first quarter of fiscal 2020, which it intends to report on June 10.
- Slack said it expects revenue between $133.8 million and $134.8 million, up 66% at the midpoint from its $80.9 million in revenue in the same period last year.
- Read more on the Business Insider homepage.
Wall Street analysts who gathered Monday for Slack’s investor day presentation were promised continued hypergrowth and a total market opportunity worth $28 billion for the office communication company.
Slack is set to IPO in the upcoming weeks through a direct listing, a unique public offering process where the company doesn’t raise any money or sell any shares, though other shareholders like investors and employees can sell their own stakes in the company.
How Slack is valued in its IPO will be determined down the road. Slack’s last private round valued the company at $7.1 billion, though the company disclosed in its filing that its most recent private transactions have valued the company upwards of $13.7 billion.
"This has the potential to be one of the most important software categories," Slack Chief Financial Officer Allen Shim told analysts during the presentation, where he spoke alongside CEO Stewart Butterfield and Slack’s newly hired chief product officer, Tamar Yehoshua, as well as other top executives.
Slack also shared new financial guidance for its first quarter of fiscal 2020, which the company will officially report on June 10.
In a company filing, Slack said it expects revenue between $133.8 million and $134.8 million, up 66% at the midpoint from its $80.9 million in revenue in the same period last year.
Slack said it also expects to see losses from operations between $38.4 million and $39.4 million, up from $26.3 million in losses during th same period last year.
Here are the slides Slack showed Wall Street.
Slack’s Sales & Marketing expenses have declined relative to its revenue, while its gross margin has stayed flat.
Slack
Research & Development costs have also declined relative to Slack’s revenue.
Slack
Slack’s General and Administrative expenses have fluctuated annually relative to its revenue.
Slack
See the rest of the story at Business Insider
See Also:
- A Slack director is in hot water with the SEC for saying the company, which just filed to go public, ‘will be one of the most important tech companies in the world’
- IBM CEO Ginni Rometty said Red Hat will remain independent because ‘I don’t have a death wish for $34 billion’
- Employees at NPM, a startup that provides a crucial service for 11 million software developers, have signed an open letter demanding better working conditions
SEE ALSO: PayPal already lost $37 million on the Uber investment it just made as part of the IPO
Source: Business Insider – bpeterson@businessinsider.com (Becky Peterson)