No. of Recommendations: 14
Slack will begin trading on Wednesday (June 20) on the NYSE under ticker WORK. Like Spotify, Slack said to heck with big underwriters like Goldman Sachs, we'll offer the shares through a direct listing.

Slack was not the first company to offer group chat and 1-to-1 chat for corporate employees, as an alternative to email. I remember using Atlassian's Hip Chat back in the day. But Slack is certainly the most successful at having built a pretty viral platform for business chat. They also easily integrate with other apps like Salesforce, Google Calendar and New Relic. So, for example, your Operations team can get a notification on their Slack iPhone apps if New Relic sees a server hitting a memory limit. For us, this feature alone was worth the subscription price.

So let's look at the numbers. Slack is already trading on the secondary market at $31.50 per share, giving it a valuation of $17 billion.


Slack's Numbers
Estimated FY 2020 Revenue: $600M
FY 2019 Revenue: $400M
Rev. growth (estimated): 50%
Current valuation: $17B
FY 2020 P/S ratio: 28
*Est. FY 2020 billings: $735M
FY 2019 billings: $517M
Est. billings growth: 42%


* Billings is defined as sales to new customers plus renewals and sales to existing paid customers.

So it's a rich valuation, but that's par for the course these days. Slack is interesting to me because it has so few competitors, it's viral and people love using it. Take Slack away from a business, and there would be loud protests, because there's nothing as good to replace it. Anyone else interested in this?

Ron
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