Menu
Slack rides high on early valuations

Slack rides high on early valuations

The team messaging site now boasts 1.1 million daily active users

April Underwood, Slack's new head of platform.

April Underwood, Slack's new head of platform.

Slack is one of those rare startups that seem to defy the odds at just about every turn.

Not long after the company joined the storied "unicorn club" last year, its valuation rose to $2.8 billion. This week, numerous new milestones attest to its continuing growth.

Now well-known among enterprises for its namesake team-communication software -- said by some to replace email -- Slack on Wednesday announced several new testaments to its growth and an important new hire. Specifically, it has surpassed 1.1 million daily active users and $25 million in annual recurring revenue; moreover, it has hired Google, Twitter, Intel and Travelocity veteran April Underwood as its new head of platform.

"Slack's growth in terms of its number of seats and conversions from free to paying customers has certainly been remarkable," said T.J. Keitt, a senior analyst with Forrester Research.

Launched in 2014, Slack's enterprise Software as a Service (SaaS) offers real-time messaging, archiving and search; the company's commonly articulated goal is to outdo email as the primary tool for team communication. There's a free lite version of its software as well as a fully featured version starting at $6.67 per user per month.

Slack's API ecosystem is a core part of its increasing popularity, the company says, and teams using Slack have set up more than 900,000 integrations.

Still, "from a business model perspective, they haven't done anything that other freemium-oriented SaaS vendors haven't done," Keitt said.

Slack also faces significant competition from contenders such as HipChat and Yammer.

However, the company essentially happened on a problem and offered a compelling solution, Keitt added. More specifically, Slack can help organizations that lack institutional memory because of opaque internal communications. "That was acutely felt by a large number of information workers," he explained.

In many respects, Slack's success is analogous to Dropbox's. "They elegantly solved a problem," Keitt said. "I think Slack will have staying power, much as Dropbox or Box."

As head of platform, meanwhile, Underwood will oversee platform products, partnerships, API integrations and developer relations.

Looking ahead over the coming year, the company plans to invest in new integrations, platform capabilities and partnerships, it said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags collaborationsoftwareapplicationsSlack Technologies

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments