Slack Lists Direct To Public With A $20 Billion Valuation

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  • #21022
    Super Harley
    Participant

    Workplace messaging app company Slack debuted at the…

    [article]1564[/article]

    #21025
    Helmholtz Watson
    Participant

    Another great write up thank you – I do use Slack for my many groups BUT I don’t pay anything – one senses the UBER risk here …

    #21092
    ThePitBoss
    Participant

    Baird initiated Slack Technologies as ‘outperform’ Wed

    Baird noted Slack’s early penetration in the market as well as strong growth and competitive position.

    “WORK has taken the team messaging and collaboration market by storm, often replacing traditional email use and improving team productivity. With penetration early, we are positive on the strong growth and competitive position. ”

    #23864
    Super Harley
    Participant

    [size=5][b] Slack Q1 2020 Earnings
    [/b][/size]
    EPS: Loss of $0.02 adj. vs. estimated loss of $0.06.
    Revenue: $201.7 million vs. $188.12 million estimate.
    -Guided next Q to $208M vs $200M consensus
    -132% net dollar retention
    -18 month implied GM adj payback
    -963 customers w/ACV >$100k (+49% YoY)
    -87% GM

    Market Summary > Slack Technologies Inc
    NYSE: WORK
    37.94 USD −1.96 (4.91%)
    Closed: Jun 4, 2020
    After hours 32.00 −5.94 (-15.66%)

    #24095
    Truman
    Participant

    [size=5][b]Slack acquires SaaS startup Rimeto
    [/b][/size]
    Slack announced Wednesday.

    Rimeto, which has raised $10 million in venture funding, builds a detailed employee dictionary for companies.
    Slack did not disclose the terms of the deal.

    Slack has acquired software as a service company Rimeto, the company announced Wednesday. Slack did not disclose the terms of the deal.

    Rimeto, which has raised $10 million in venture funding, builds a detailed employee dictionary for companies. That allows employers and fellow employees to see employees’ skills, experience and current projects.

    Slack said the acquisition will help its users fell more “connected,” especially as several offices continue to work at home during the Covid-19 pandemic.

    “Rimeto’s advanced profile and directory features will be integrated into Slack directly, but we will also continue to offer Rimeto as a standalone product and support their existing enterprise customers,” Slack CEO Stewart Butterfield said in a release.

    Slack Technologies Inc open
    NYSE: WORK
    31.48 USD +0.010 (0.032%)

    #24559
    ThePitBoss
    Participant

    $WORK Slack stock lower as falling billings growth stirs up competition fears

    Despite posting better-than-expected top and bottom-line 2Q21 results after the close yesterday, Slack (WORK) is getting pummeled today, down ~14%. The headline numbers look relatively solid, especially the breakeven adjusted EPS result, representing the first quarter that WORK didn’t post a net loss.

    However, the upside EPS and revenue figures don’t tell the whole story. Viewed by many as a clear beneficiary of the work-from-home shift, some of WORK’s key metrics show that the company isn’t strongly capitalizing on the trend.

    Most notably, billings growth slowed to 25% from 38% last quarter. The closely monitored demand metric was negatively impacted by $4 mln in COVID-related concessions and contract duration headwinds.

    WORK’s heavy exposure to SMBs, which account for ~25% of total revenue, created a stiff headwind in Q2. The company also generates a significant amount of business from the hardest hit industries, including travel, retail, and entertainment.
    In order to keep some of these customers on board, WORK has offered concessions, such as credits, payment installment options, and billing durations of less than a year.
    The impact from the surge in pandemic-induced layoffs can also be seen in WORK’s large customer account figures. During the quarter, 50 customers moved from the $100K-$150K bucket to the $50-$100K bucket, due primarily to headcount reductions.
    Consequently, net dollar retention rate slid to 125% compared to 134% last quarter.

    For a point of comparison, only ten customers dropped to the smaller bucket in 2Q20.
    WORK’s tepid guidance is adding fuel to the fire. Next quarter, the company is forecasting EPS of ($0.06)-($0.05) and revenue of $222-$225 mln, both of which are merely inline with consensus estimates.

    More concerning, though, is WORK’s billings growth guidance for Q3. Specifically, the company expects “similar quarter-over-quarter percentage growth from Q2 to Q3 as observed in fiscal 2020.”

    In 3Q20, billings grew by a modest 6% compared to 2Q20.

    CFO Allen Shim commented that conditions have stabilized, that some parts of the business are accelerating, and that concession requests have slowed. However, he also stated that the macroeconomic environment remains uncertain for its customers, lending to WORK’s cautious outlook.

    #24560
    ThePitBoss
    Participant

    [b]RBC lowered Slack $WORK tgt to $30 from $38. Reiterate Outperform
    [/b]
    F2Q saw a likely peak in contract contraction and churn coupled with trough in large deal activity, counterbalanced by strong new paid customer growth.

    While shares are likely to be range-bound until evidence of improved execution, we see attractive risk/reward if COVID headwinds prove to have troughed, with several potential tailwinds into 2H. rating, reduce price target to $30 (from $38).

    #25022
    TradersCom
    Keymaster

    [color=green][size=5][b]Slack Rips Over 38% on Saleforce Takeover Talk
    $CRM $WORK – The ATH at IPO $42 beckons … $QQQ
    $SPX
    Slack Technologies Inc Close
    40.65 ▲ 11.08 +37.47%[/b][/size][/color]

    #25023
    TradersCom
    Keymaster

    Salesforce is in talks to buy Slack, deal could be announced next week

    KEY POINTS
    Salesforce is in talks to acquire Slack, and a deal could be announced as soon as next week, according to a person familiar with the matter.
    Shares of Slack jumped Wednesday after the Wall Street Journal first reported that Salesforce had held talks to buy the company.
    The acquisition would be Salesforce’s largest to date if the companies go through with it.

    Shares of Slack closed almost 38% higher Wednesday after the Wall Street Journal first reported that Salesforce held talks to buy the company. Salesforce, whose stock closed down 5% on Wednesday, is scheduled to release its fiscal third-quarter earnings next week.

    It’s unclear how much the deal would be worth, but Slack’s market cap ballooned to more than $20 billion following the WSJ’s original report.

    Salesforce has been on an acquisition spree, taking advantage of its market cap growth in recent years to buy growing companies. It acquired MuleSoft for $6.5 billion in 2018, the company’s biggest deal ever at the time, to help connect cloud applications. The following year it spent more than twice that amount on Tableau, acquiring the data visualization company for $15.3 billion.

    Slack would be one of the biggest software deals ever for the industry. It would rank among IBM’s $34 billion purchase of Red Hat in 2019, Microsoft’s $27 billion purchase of LinkedIn in 2016 and Facebook’s $19 billion purchase of WhatsApp in 2014.

    “This would be a game changer move for Benioff & Co. to further build out its collaboration engine and product footprint as cloud spending ramps across the enterprise,” Wedbush Securities’ Dan Ives told CNBC, referring to Salesforce CEO Marc Benioff.

    Shares of Microsoft, which competes with Slack through its Teams offering, also dipped slightly on the report.

    Microsoft already competes with Salesforce in software for tracking customers. In 2016 TechCrunch reported that Microsoft looked at buying Slack for up to $8 billion, but no deal came about. Later that year Microsoft introduced the Teams communication app.

    “Our primary competitor is currently Microsoft Corporation,” Slack said when it sought to become a public company in 2019. Microsoft has a large customer base it has been able to convert to Teams, and Salesforce could give Slack a similar benefit.

    Slack last said in October 2019 that it had more than 12 million daily active users.

    Spokespeople for Salesforce and Slack were not immediately available to comment.

    — CNBC’s Ari Levy and Jordan Novet contributed to this report.

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