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2018 revenue was $400 million, ~doubled the previous year - Slack isn't a company with just a ton of free users and no monetization
by zild3d 7y ago
2018 revenue was $400 million, ~doubled the previous year - Slack isn't a company with just a ton of free users and no monetization
- fastball 7y ago40x still seems like an insane multiple.
- rayiner 7y agoAssuming they have a margin of 50%, their EBITDA multiple is 80. For comparison, Facebook had an EBITDA multiple of ~50 at IPO time.
- umeshunni 7y agoSlack isn't a consumer company, they are an SaaS enterprise company. Most SaaS enterprise companies trade at far lower multiples. A decent comp for Slack would be Dropbox, which has $1.4B and rough valuation of ~$10B
- randomsearch 7y agoIt is overvalued, but then so are a lot of tech companies. I think Slack is a good app, one of the tech startups of true value from this boom cycle, but it’s overvalued. When the likely market adjustment happens, it’ll get a haircut, but it will deservedly survive and prosper.
- efficax 7y agoIt's a great time to IPO
- treis 7y agoEven if we ignore the time value of money, Slack needs to quadruple its revenue and turn it all into profit to justify a 16B valuation. I can see it happening since so much is being integrated into it from 3rd parties, but it's a very tall order.
- theturtletalks 7y agoSolid revenue and solid growth. I was not saying Slack has no monetization, but getting from 400M to 16B is 40X growth. To expand that quickly would require monetizing your existing users most of whom use the free tier. How does Slack really plan to do that?
- AznHisoka 7y agowhy do they need to reach 16B in annual revenue? I dont think you will find any tech stock with a market cap of 1x revenue.
- theturtletalks 7y agoFair enough, but 40X multiplier is on the tail end for tech companies that don’t sell ads (not to say they won’t in the future).