Slack Technologies Inc., a provider of cloud-based tools and services that facilitate workplace collaboration, will go public this week. The company filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on April 26, 2019. Several highly-touted IPOs already have hit the market, as tech-oriented private companies seek to go public while the major U.S. stock market indexes are at or near all-time highs. Key facts related to the Slack IPO are summarized in the tables below…
Slack Technologies IPO: Key Facts
- To be structured as a direct public offering (DPO)
- Existing privately-held shares will be sold to the public
- The market, not investment bankers, will determine the offering price
- Will start trading on June 20 on the New York Stock Exchange (NYSE) under symbol “WORK”
- The company expects to be valued by investors at $16 billion to $17 billion, Fortune reports.
Financial Highlights
- Revenue of $400.6 million in fiscal year ending Jan. 31, 2019
- Revenue up by 82% from prior fiscal year
- Lost $140.7 million in its latest fiscal year, versus $140.1 million in prior year
- Cash burn rate in the latest fiscal year was $97 million
- Net losses exceed cash burn rate because customers pay up front
- Cash, cash equivalents, and marketable securities: $841.1 million
Usage Statistics
- Daily active users exceed 10 million
- Collective weekly usage exceeds 1 billion messages and 50 million hours
- Typical paid user connected for 9 hours on at least one device per work day
- Typical paid user has over 90 minutes of active usage per work day
Subscriber Data
- Used by over 600,000 organizations with three or more employees
- More than 500,000 organizations are currently on a free subscription plan
- More than 95,000 organizations are Paid customers as of April 30, 2019.
- Paid customers increased by 49% in the latest fiscal year from prior year
- Payment plans are monthly or annual, based on number of users
- Paid customers include more than 65 companies in the Fortune 100
- Has 575 large customers that pay $100,000 or more annually, up by 93%
- The 575 big customers contributed 40% of total revenue in last fiscal year
Change of Strategic Direction
Slack is an example of a company that changed strategic direction as it grew. Starting out as…
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