One company is benefitting more than most from the COVID-19 pandemic and it has the potential to grow into a $100 billion giant.

Time for a thread

1) Slack ( @WORK) was founded in 2009 by Stewart Butterfield and Cal Henderson out of frustration from broken communication and fragmented information.

The tool was built to help the team internally at first to share information and stay on the same page.

2) The company intends to create a hub of shareable business information inside and across organizations. It aims to bring together the following elements:

1. People

2. Applications

3. Data

3) The company’s platform is intended to create scalable integration capabilities with the following features:

1. Messaging and team-based channels

2. Advanced Search using AI and ML applications

3. Third-Party Application Integration

4) Slack generates its revenue through a subscription model. It offers a self-service approach beginning with free subscriptions.

The company has 110,000 paid customers and 985 customers contribute about 49% of the revenue.

5) The industry is very competitive with large companies such as Microsoft, and Google.

However, Slack continues to deliver growth:

1. Gross Sales (01/31/2020): $630.4M (53% YOY)

2. Gross Margin (01/31/2020): 85%

3. ARR 2020, 2019: 19% & 49%

6) Slack intends to dominate the $28 billion market by focusing on executing on some advantages:

1. Organic Customer Growth

2. Network Effects: Utilize Slack Connect

3. Customer-Centric Design

4. Scalability, Availability, and Reliability

7) Slack intends to continue growth through the following strategies:

- Enable Slack usage across business networks

- Grow application platform

- External connection and information share between
organizations

- International expansion

8) Slack has a current market value of ~$15 billion.

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