40% growth according to Slack workforce report: Ongoing Salesforce deal
From small startups to large enterprise community, people are using Slack for 8 long years. And since then, it became more than just a platform to stay connected for a constructive workflow. Today, the platform holds close to 200,000 paid customers and that’s the report of only first quarter. Even in the pandemic, the company may haven’t seen an increase of customers like Microsoft Teams or Zoom, but it’s certainly there.
Currently, the market for slack is receiving a 52-week high of 44.25 points which reached a 25.895 billion market cap. The company is now receiving an ambitious acquisition by Salesforce. The deal may go through within a few months. During the pandemic, Slack is in a position of quarterly business efficiency and it’s going strong. According to a Q1 report, the company profited $231 million. In 2020, it was quite low compared to the report we have today. It’s a 36% growth from last year. After adopting multiple cloud service Slack improved work efficiency for people doing home office. In previous years, the platform was just there, and it benefited people with subscriptions. But when companies were forced to close due to lockdowns, the profit margin grew for Slack.
Slack Technologies, Inc S&P score 4,229.68 which is a +2.42% gain and according to Dow 30 it’s 34,537.26, -62.56 (-0.18%). Performance this year contrasted brighter than last year. This led to the Salesforce acquisition. Currently, the company has 1,285 paid customers. Among them, there are 113 high paying. They generate over $1 million each year through Slack. This adds $100,000 in annual profit. Compared to last year, it’s a 45% net gain.
Stewart Butterfield is said to lead the platform even after the Salesforce acquisition. The company is currently holding its all-time high value and the deal is now worth $27.7 billion (£20.7 billion). It’s the largest acquisition of the cloud giant.
Microsoft is also dominating the online workforce marketplace with Microsoft 365 suits and especially Teams. Backed up by Azure cloud services, the platform soared with performance. It is one of the most used SaaS (Software as a subscription service). Microsoft sells its Office 365 services alongside Team’s subscription. Competing with that is not easy.
Salesforce acquiring Slack is not the first time the company is in a competitive situation with Microsoft. Their CRM (customer relationship management) already had a clash with Salesforce before and the £20.7 billion deal is not going to change that.
Analysis by Morgan Staley takes a deep dive into the matter. As a fierce rival of Slack, Microsoft secured 44 million daily active users. We guess it’s because more services are integrated into Microsoft than anyone else in the market. But why Salesforce wanted to buy Slack in the first place? They could just use any platform of their wish. But instead, they saw an opportunity. The opportunity of making a platform solely for business and pushing it as hard as possible to success. And it’s like every other business venture.
Statics showed that over 91,000 paid customers over Slack, made over 950,000 endpoints with other organisations. They used the slack connect service to do so. Stewart Butterflied, the CEO, said: “Companies globally are racing toward digital-first” and “way of working to attract talent and to win.” According to Q1, the service is satisfying more customer and people who come to slack for the first time, tend to stay there rather than choosing another platform. Which results in the company’s success. Microsoft, being the giant it is, they are not stopping anytime soon to add features. Azure cloud, team’s integration is great and all but the workflow of slack is amazing too. Meet, call, collaborate on home, business, enterprise and education plans make the Team more flexible nonetheless.
According to Salesforce, after the merge, they want to leverage deep integrations. Slack will get a major update with next-generation cross-domain experience for employees. Once overtaken and overlooked all the bumps down the road, Slack has the potential to turn into an absolute powerhouse and rule the business collaboration world.
The deal may be the single biggest one in the history of Salesforce and one of the biggest in the tech world. If the deal goes well, it will be an end for Slack to run as an independent publicly-traded company. And will turn out to be a full-on enterprise service business.