Slack Plans For IPO, Reports $400mn Revenue, Loss Of $139mn

Slack on Friday has filed its papers for its first public offering. The company has revealed that its revenue is $400 million and its losses are $319 million. The company is pursuing a direct listing on the stock exchange of New York with the symbol SK.

Slack’s revenue was $400.55 million, its net loss was $138.9 million and its cash equivalents on January 31 were $841 million. The company has 10 million active users daily and its paid customers are 88000 which are up 49% every year. There are 575 paid customers who are paying above $100,000.

The company has spent half of its revenue on marketing and sales during 2019 and it has reported $233 million of operating expenses. The company has increased its market and sales spending over last few years.

Slack has spent $140 million in the year 2018 and in 2017 it was $104 million. Slack is expecting to continue its spending on marketing and sales as part of the company’s strategy to grow. Slack said that they believe their market is underpenetrated and they would continue expanding its sales and marketing efforts for reaching many organizations and users so as to increase their paid customers. Slack would offer two types of shares that would consolidate the voting power in its top shareholders who have stock of Class B. the common stock of Class A would be entitled to a vote for every share, while Class B would be for 10 shares each share.

Salck’s largest shareholder is Accel with 24% shares which are followed by 13.3% stake of Andreessen Horowitz and 10.2% stake of Social Capital. Stewart Butterfield, the CEO of Slack owns 8.6% stake and SoftBank has 7.3% stake. Slack said that it would need costly systems for keeping in compliance with the laws of new data which would include the General Data Protection Regulation of EU.