Slack Reports Better-Than-Expected Results for Q3
Slack reported better-than-expected results for its fiscal third quarter, despite a tumultuous year that has seen its debut stock value plummet by half.
Key takeaways from Slack’s Q3:
- Loss of 2 cents a share
- $168.7 million in revenue, beating expected revenue forecast of $156 million
- Revenue for Q3 2019 increased by 60% from $105.6 million in Q3 2018
Source: SoftwareReviews Slack Scorecard. Accessed December 10, 2019
Our Take
Slack’s fall in value from its debut stock listing may be beginning to slow down. However, the reality is that Slack’s poor performance on the stock exchange is not over. Microsoft’s continued competitive pressure through its Teams offering is absolutely an existential threat to Slack.
Slack may like to think it is a key competitor with Microsoft in the team collaboration space. Yet Microsoft’s $1 trillion market size paints a very different power dynamic. Office 365 is ubiquitous in the workplace and Teams is “good enough” to keep Slack at bay if organizations want to rationalize their collaboration toolsets.
Slack’s resort is to try and change public discourse to user engagement metrics – of which Slack would be winning. Unfortunately, the metric that matters most – its stock value – is not yet responding.
Source: SoftwareReviews Microsoft Teams Scorecard. Accessed December 10, 2019