These valuations presume highly optimistic revenue growth and continued low rates for a number of years. Slacks revenue has doubled year over year ($105m, $220m, $400m) while net income has...
These valuations presume highly optimistic revenue growth and continued low rates for a number of years.
Slacks revenue has doubled year over year ($105m, $220m, $400m) while net income has remained static ($-146m $-180m $-140m) which is impressive even by todays standards. Guidance is revenue growth next year of 50%.
Salesforce.com had similar revenues (147m, 273m, 444m) followed by about 50% revenue growth, yet it was valued at only $4 billion. It took six more years for salesforce to reach $25 billion, by which time it had grown revenues to $2.8 billion.
Either the messaging market space will have to grow significantly, or Slack will have to expand into other product areas.
Slack is also in an unsticky space, it is very easy switch messaging tools, and Microsoft Teams is going gangbusters.
They also compete with Google Hangouts/Meet, and regular old email. They very much risk revenue loss each year, especially since a large client base is surely startups, which happen to exist in a...
They also compete with Google Hangouts/Meet, and regular old email. They very much risk revenue loss each year, especially since a large client base is surely startups, which happen to exist in a bubble right now as well.
These valuations presume highly optimistic revenue growth and continued low rates for a number of years.
Slacks revenue has doubled year over year ($105m, $220m, $400m) while net income has remained static ($-146m $-180m $-140m) which is impressive even by todays standards. Guidance is revenue growth next year of 50%.
Salesforce.com had similar revenues (147m, 273m, 444m) followed by about 50% revenue growth, yet it was valued at only $4 billion. It took six more years for salesforce to reach $25 billion, by which time it had grown revenues to $2.8 billion.
Either the messaging market space will have to grow significantly, or Slack will have to expand into other product areas.
Slack is also in an unsticky space, it is very easy switch messaging tools, and Microsoft Teams is going gangbusters.
They also compete with Google Hangouts/Meet, and regular old email. They very much risk revenue loss each year, especially since a large client base is surely startups, which happen to exist in a bubble right now as well.
Good point. Almost half of their customers are in the IT space.