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I don’t think weighting Guidance in most cases is useful, less so during the pandemic.

ElonFeeNix-
Q1 2021 grew sequentially by almost $20M when they set a record for new paid customers (see below). Q2 2021 did not keep up that pace.

I can’t argue with your reasoning; although, their customer adds did stay above average.

they got a real shot in the arm in the February - April quarter with 12,000 new paid customers. Oddly enough, that quarter did not result in an equally impressive bump in paid customers with $100K in ARR.

Slack does have a somewhat slower expand period, relative to other companies discussed here, following the landing of new customers. I don’t have an explanation of the lack of adding enterprise customers at a greater clip, that you pointed out so well.

This could be another case of an amazing product that will only grow when the economy itself is growing. I don’t believe either that Slack’s stock price will hold up better than any so called ‘WFH’ stock either.

I do believe that at some point Slack’s customer base will reach a critical mass that when reached the customer adds will accelerate quickly (mostly because Slack has the ‘Stong’ network effect, of needing to be a paid subscriber to benefit from other paid subscribers). When that critical number of paying customers is reached, when Slack becomes not only the standard which Bert Hotchfield says it is already; but, Slack will be an expected part of doing any kind of business anywhere (anywhere using Google Docs instead of Office365 perhaps). When that happens this companies value will align with a much higher share price.

I've been wrong on Slack so far. I have no idea if I'm right now, and if I am right, I don't know if that will express itself in the stock price in the next week, the next month, or even the next year.

I’m betting that with the awareness of CEO’s the world over realizing that empowering a remote workforce, albeit possibly out in the field needing Slack more so than those working from home, being advanced six years in the last six months the time to critical mass will be reached sooner than later.

Jason
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