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> they're in a potentially very large market. They're in a shrinking market. It's not like they "discovered" chat. They slapped a good interface over IRC and c
by orthecreedence 11y ago
> they're in a potentially very large market.
They're in a shrinking market. It's not like they "discovered" chat. They slapped a good interface over IRC and centralized everything on their servers. Everyone and their dog is now writing chat apps, including existing big enterprise companies. So while slack got a large initial boost from developer-driven teams, other companies with existing large userbases are now catching up (and fast).
Slack is one part decent app five parts hype. It's not worth anywhere near 3.8B, and it now has immense shoes to fill because it apparently thinks it's worth that much.
- djloche 11y agoAssuming the latest numbers from TC are correct, they're at annual reoccurring revenues of somewhere between from 70M-140M (depending on average per seat revenue). In the past 12 months they've gone from 100,000+ paid seats to over 800,000+ paid seats. The investors are valuing (and expecting) future growth. For comparison: Atlassian is estimating $440+ revenue for their fiscal year, and has a market cap of $5.5B.
- harryh 11y agoOther businesses writing chat apps increases the degree of competition. It does not reduce the size of the market.
- wj 11y agoHonest question, what do you think Slack is worth as a company?