However, many of these users won’t be engaging with Teams like they would with Slack. Butterfield concedes that Microsoft may even top 50 million Teams users in coming quarters, as more Skype for Business users are forced to use Teams for services such as internet telephony. But that doesn’t mean that its user engagement levels are strong. The CEO noted that Microsoft is forcing many users to migrate to Slack from older systems, boosting its user numbers. Just look at the weak engagement numbers that Microsoft themselves report and (the) much deeper level of engagement you see among Slack users. On the company’s most recent earnings conference call, Butterfield stated that:Īlthough Microsoft markets Teams (as) a Slack competitor and there’s no doubt this causes confusion in the marketplace, in practice these are different tools, used for different purposes and our customers achieve markedly different results. CEO Stewart Butterfield took direct aim at the analysts who were suggesting that Teams is killing of Slack. That is a clear – and even existential – threat to Slack. Additionally, a recent CNBC survey of tech leaders found that far more of them use Teams than Slack. As of last month, Microsoft had more than 20 million daily active users, while Slack only has around 12 million. Teams already has more daily active users than Slack. Slack’s overall rate of new customer acquisition may continue to drop, but as long as existing customers keep spending more money on the company’s services, Slack’s operating results will look better and better.Īlso posing a threat to Slack stock is the closely-related problem that Microsoft Teams is stealing Slack’s thunder. ![]() ![]() This means that customers are spending much more on Slack with every passing quarter as users utilize the platform more extensively and purchase additional services. Slack has a net revenue retention rate of 134%, which is extremely good, even by software standards. However, the company’s customer acquisition trends appear to be favorable. That trend can also be confirmed by looking at the number of paid customers, which rose by just 30% year-over-year. Based on Slack’s forward guidance, its revenue growth looks poised to dip to around 40% or so within the next year. That fell to 60% during the most recently reported quarter. Slack had been posting nearly triple-digit-percentage revenue growth around the time of its IPO. ![]() Slack’s Revenue Growth Slowdown Isn’t As Bad As It LooksĪrguably the biggest concern about Slack right now is that its revenue growth is rapidly dropping.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |