X

This is not a paywall.

Register for free to continue reading.

We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. It’s quick, easy and will cost you nothing.



Nearly there! Create a password to finish up registering with us:


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Slack Listing Likely to Value It at Up to $17 Billion

Business Maverick

Business Maverick

Slack Listing Likely to Value It at Up to $17 Billion

The Slack Technologies Inc. logo is displayed on an Apple Inc. iPhone in an arranged photograph taken in Arlington, Virginia, U.S. on Monday, April 29, 2019. Slack's filing last week confirms its plans to avoid a traditional public offering and instead list its shares directly on the New York Stock Exchange under the symbol SK. Photographer: Andrew Harrer/Bloomberg
By Bloomberg
13 Jun 2019 0

Slack Technologies Inc. is expected to be valued by investors at $16 billion to $17 billion when it lists its shares publicly next week, according to people familiar with the matter.


 

Slack’s valuation is roughly based on the workplace chat and collaboration software company’s projected revenue and current growth rate, said the people, who asked not to be identified discussing private talks.

The expected value is up from the $7.1 billion in its last private funding round in August. It’s similar to the company’s share sales on the private market, where in April investors were snapping up stock at prices that would give the company a valuation of about $16 billion.

A spokeswoman for Slack declined to comment.

Slack is planning to have its shares start trading June 20 on the New York Stock Exchange under the ticker WORK.

Investors’ valuation expectations are based on some back-of-the-envelope math: Slack said Monday that it expects at least $590 million in revenue in its 2020 fiscal year, which ends January. That’s a growth rate of as much as 50% compared with the previous year.

That suggests the company could bring in almost $900 million in fiscal year 2021, and investors are looking to value the company at roughly 20 times that projected revenue, the people said.

That’s even as the annual revenue growth rate has slowed from 110% and 82% in the 2018 and 2019 fiscal years, respectively, according to a regulatory filing.

Slack said in its filings with the U.S. Securities and Exchange Commission that it can’t guarantee that its plans to increase revenue and cut operating losses will ever allow it to become profitable.

Slack is also rolling out partnerships with other software companies. Dropbox Inc., the document-management software developer that went public last year, announced on Tuesday that it had integrated Slack into its workplace product.

Unlike a surge of tech companies that have gone public this year in traditional initial public offerings, Slack is going public through an unusual direct listing. The company won’t issue new shares to raise funds for itself. Rather, its investors will be allowed to begin selling existing shares immediately.

New technology stock offerings have been on the upswing this year. On Tuesday, CrowdStrike Holdings Inc. raised $612 million in one of the largest cybersecurity company IPOs ever.

Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. are advising Slack on the listing. Bloomberg Beta, the venture capital arm of Bloomberg LP, is an investor in Slack.

Gallery

Please peer review 3 community comments before your comment can be posted