Slack IPO | Slack Stock | Slack CEO – Slack CEO Stewart Butterfield and the cofounder of tech’s buzziest office-messaging app, is predicting an end to the world of email in the next seven years.
Slack is many things: an engine for collaboration and a distraction machine; a community-builder for an office and a facsimile of high school cliques; a service to streamline work and to blur the lines of your work/life balance. It is the bane of my existence and also, at times, the only salve for a stressful day.
The Slack Technologies Inc.’s stock ended its first day at $38.62, which is well over previous private-trading levels and 49% higher than the called reference price of $26 published by the NYSE on Wednesday. That shows Slack a fully diluted valuation of about $23.2 billion. The stock started just after noon Thursday at $38.50.
The workplace-messaging service went public by an unusual method called a direct listing, becoming only the second major company ever to make such a move.
Slack CEO Stewart Butterfield, Slack’s chief executive and co-founder, said in an interview Thursday that the company chose a direct listing, “This wasn’t motivated by a James Dean being a rebel trying to tear down the system,” he said.
Mr. Butterfield said there was “much more enthusiasm than skepticism” from investors over the direct listing. Finance Chief Allen Shim said the direct listing is “a more effective vehicle to get to a more efficient price.” Mr. Butterfield’s mother, Norma Butterfield, and several employees rang the opening-trade bell as Slack’s shares hit the market.
Venture firm Accel, parlaying an early $12.2 million investment in Facebook into a stake worth over $9 billion at the time of the company’s IPO in 2012.
Slack’s paying customers total over 95,000 — with more than 10 million daily active users, the company said in a regulatory filing.
Seven years later, Accel is enjoying a comparable stretch of success.
The firm is the biggest investor in Slack, owning a 23.8% stake as the messaging app hit the public market on Thursday. Based on an opening price of $38.50 on the New York Stock Exchange, Accel’s shares are worth $4.6 billion.
Slack IPO | Slack Stock:
In the lead-up to its IPO, Slack reported that, for the fiscal year ending January 31, 2019, it had generated $400.6 million in revenue, up from $220.5 million in the previous year and up from $105.2 million in 2017. Slack also reported losses of $138.9 million for the fiscal year ending in January 2019.
On February 4, 2019, several media news outlets reported that Slack has filed for taking the company public. According to The Wall Street Journal, sources indicated the company will pursue a Direct Listing Process (DLP) instead of the traditional IPO.
“As investors it is easy to get lost in the complexities of product market fit or connecting a young company to an established category,” Accel’s Andrew Braccia wrote in a blog post on Thursday. “Slack is a great reminder that the most interesting companies are often the ones whose courses aren’t easily charted. The commonalities between those companies start and end with the drive, creativity and resilience of their founders and early team members.”
On April 26, 2019, Slack released its S-1 filing for IPO, pursuing a direct listing on the New York Stock Exchange. The firm is the biggest investor in Slack, owning a 23.8% stake as the messaging app hit the public market on Thursday. Based on an opening price of $38.50 on the New York Stock Exchange, Accel’s shares are worth $4.6 billion. The papers filed for its IPO revealed $400.55 million in revenue and $138.9 million in losses.
The NYSE has set a “reference price” of $26 per share for Slack, based roughly on the price of private trades over the last few months.
“Inside our companies, I think that’s happening faster and faster. Over the next few years, certainly over the next five to seven years, we’ll see a faster change,” Slack chief Stewart Butterfield said. But he added, “The broader world of email will stick around.”
Slack’s listing is different from the slew of tech IPOs this year, including Uber, Lyft, Pinterest and Chewy.