Slack lost $140M last year

Microsoft
bigdtc

Microsoft

PRE
Cubic
bigdtcmore
Apr 26 310 Comments

On only $400M in revenue.

Who's planning on catching this falling knife when they go public?

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TOP 310 Comments
  • Microsoft MSFT->DOCU
    And slack has to confront a 1000 pound Gorilla called Microsoft
    Apr 26 37
    • Salesforce Liu Kang
      Which companies?
      Apr 27
    • Uber zzzz5
      Any big company that already pays for Office, Sharepoint, Exchange, Dynamics, SQL Server, etc. will just end up buying Teams as part of their licensing deal instead of doing a one-off for Slack. Cheaper, easier, integrated with the Microsoft enterprise ecosystem.
      Apr 28
    • Getting teams as part of a combo deal doesn't mean employees are using it. MS teams adoption numbers show the number of companies you have access to it, not necessarily using it. Everyone still uses slack and will continue to do so, there is really no other alternative right now.
      Apr 28
    • Uber @₺?>!
      Microsoft has never really built their own, innovative products. They've fast followed, or acquired the leader. And then they've often thrown in some anticompetitive practices to lock it all in.
      And it's worked.

      If it's a store-based platform, bet against Microsoft. If it's anything else, stop looking at traditional product innovation and execution as being particularly relevant.
      Apr 28
    • Facebook Lt. Ilia
      Slack will be acquired by MSFT or G.
      Apr 28
  • DoorDash mviewfs
    Slack is way better than Microsoft teams. They have fair pricing. Easy to use. Will succeed in long run. Microsoft is selling teams as an office 365 bundle otherwise no one will buy it.
    Apr 26 39
    • I blame it on the msfties 😆
      Apr 29
    • Shutterstock kudabobb
      Slack is hot garbage
      May 1
    • Thank you for your wisdom 😆
      May 2
    • Riot Games
      ifbx7474

      Riot Games

      PRE
      Riot Games
      ifbx7474more
      Teams is hot garbage. It’s all part of the giant free pile of absolute shit the MS sales reps unload on the C-Suite with Azure credits.
      May 2
    • Microsoft oohds
      ifbx7474 tf are you talking about sales reps and Azure credits....? Sales reps have zero empowerment, first of all, and second of all, Azure credits are definitively NOT allocated to customers purchasing O365.
      May 2
  • Comcast ichiban
    Also one trick pony, no revenue moat
    Apr 26 14
    • Without the cloud buzz, MS stock will be a dud.
      Apr 28
    • Compass 905
      No one said you can’t execute, simply that it takes an eon and a c.j. to do it.
      Apr 28
    • Adobe / Eng
      abcdxyz123

      Adobe Eng

      PRE
      Yahoo, PayPal
      BIO
      Software engineer architect manager big data platforms
      abcdxyz123more
      Dudes they reached $1 tr. where are you with your supposedly fast execution? !!
      Apr 28
    • Splunk
      timtrolley

      Splunk

      BIO
      Engineering
      timtrolleymore
      Compass will be a 1-trillion company in 5 more years instead of 35 more years.
      Apr 28
    • Adobe / Eng
      abcdxyz123

      Adobe Eng

      PRE
      Yahoo, PayPal
      BIO
      Software engineer architect manager big data platforms
      abcdxyz123more
      That’s it then. << abcdxyz123 rushes to buy all available compass shares and dumps anything related to MS on the way >>
      Apr 28
  • DoorDash mviewfs
    Linkedin uses slack instead of TEAMS ?
    Apr 26 17
    • Microsoft 🐁Pinky😜
      @xtFP08 No it doesn't. It's light years ahead of Skype for Business. I also haven't noticed any resource problems.

      I'm not saying I'm a fan of it. I never used Slack much so can't compare. Slack is a more mature product so it's probably better. Teams has been improving rapidly though. A year ago. Everyone at Microsoft still used Skype because Teams was a piece of crap. Now I can't imagine going back.
      Apr 28
    • MS is just not capable of producing an open platform as good as slack.. its just not in their DNA and will never be.
      Apr 28
    • LinkedIn Kwofjrjw
      Many teams in Azure use Slack. But afaik they're using the free tier mostly.
      Apr 28
    • Microsoft 🐁Pinky😜
      @makeitbig I've only used Slack's free tier, but what does it have that Teams doesn't? The only thing that I don't like about Teams is that the persistent chat lazy loads as you scroll farther back. It can make it a pain to find stuff. However, the search feature balances it out.

      Other than that, in Teams I can call into meetings, screen share, record meetings, preview and edit Office files, make phone calls, share gifs, make bookmarks, and more.

      Also, the video and call quality is light years better than Skype for Business (i.e. Lync).

      I have nothing to do with developing Teams. I just genuinely don't understand why Slack is such a better product.
      Apr 28
    • If a companys own people don't love its products and are using competitor products it does say a lot about it 😎
      May 11
  • Amazon xAQu84
    Companies who use slack should switch to Discord
    Apr 27 14
    • New / Eng
      mRvg14

      New Eng

      PRE
      Amazon, Bloomberg LP
      mRvg14more
      Chime can't even alphabetically sort my favorite contacts. Chime is complete garbage.
      Apr 27
    • TrueCar / Design nQkK62
      I actually think discord is the best chat service I've ever used. It's not suited for business because well it was made for gamers. But if they made a business version, I think they could easily beat slack. Plus their shit is free atm.

      Curious what you guys mean by scaling limits. Discord can host thousands of users. Their instant calling is amazing, and if you do screenshare in a dm it's also really good quality
      Apr 27
    • Indeed / Eng animal🦍
      So China can know everything about our data?
      Apr 28
    • Salesforce / Eng aTicTac
      Discord permissions would be a nightmare to manage for a business.
      Apr 28
    • Rapid7 / Eng ikarus
      @OP, sorry to chime in but you suggested that companies move from discord to slack. Wouldn't the on us be in you to justify the move, rather than the repliers?
      Apr 28
  • Microsoft ty hg a
    "only" 400M revenue
    Apr 26 10
    • Amazon / Eng
      QLLw43

      Amazon Eng

      PRE
      Comscore, Inc.
      QLLw43more
      It's just 400 small loans of a million dollars
      Apr 27
    • Microsoft
      Tier 1

      Microsoft

      BIO
      #1 in Prestige
      Tier 1more
      Autocorrect
      Apr 27
    • Cruise Automation sleitnfo1
      you aren’t funny
      Apr 27
    • Confluent Phym78
      @Tier1 can you charge your phone please ?
      May 2
    • Microsoft
      Tier 1

      Microsoft

      BIO
      #1 in Prestige
      Tier 1more
      I only charge my phone while I’m at work. Gotta get every last MWh to maximize TC.
      May 3
  • And only “82%” growth rate. Sounds like OP works in Microsoft teams group :)
    Apr 26 3
    • Amazon LoanerBadg
      So they loose money, but make up for it in grater volume?
      Apr 27
    • You pay for growth. You lever off growth you trade rev growth for margin. See Amazon
      Apr 27
    • Cruise Automation sleitnfo1
      That’s how growth works, yes. Compare their YoY growth with their YoY losses: they are growing faster for less losses meaning they are getting more effective at onboarding customers for the same money. This is a road to profitability.
      Apr 27
  • Microsoft laug
    Slack won’t survive more than 5 years. Microsoft Teams got o365 support and compliance to support fintech, DoD, banks, gov. And ecosystem to help. Slack has a considerable disadvantage.
    Apr 27 11
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      @makeitbig hahahhajahahhaha
      Apr 27
    • Square sq_newb
      Slack (at the Enterprise tier) is compliant with FINRA, HIPPA, and has most of the other security certifications. See: https://slack.com/security
      Apr 27
    • Thermo Fisher / Sales zeussical
      We can dream that O365 will be obsolete in five years but the fact is most companies not in tech are super slow to role out new programs and features for employees. There are still quite a few people in our organization on Windows 7 and Office 2010.
      Apr 27
    • Microsoft laug
      At the end who can make money that matters the most, yes, Slack can be used in small companies and small teams. But will a bank, any gov. Agency, fintech company or 500 fortune company will deploy(company wide) Slack, I doubt. And these are the customer those pay a tremendous amount of money. Competing with MS in enterprises space is not an easy task. MS had lots of assets and push behind the MS Teams. It will be interesting to see how slack will compete. They already expressed their in security by publishing full page ad when Teams launched.
      Apr 28
    • Big powerful MS has been around for decades .. but still Slack has conquered comms platform within in a few years .. nothing has and will change for both companies
      Apr 28
  • Microsoft MMKy42
    Teams is part of the Microsoft platform. Slack is a chat service...not sure why anyone would invest in them.
    Apr 27 8
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      What way is Slack "fun"?
      Apr 27
    • Primer AI / Eng
      gEMD88

      Primer AI Eng

      PRE
      SAIC
      BIO
      Two time CTO with experience bringing SaaS to market. Can provide career advice.
      gEMD88more
      Have you tried it? It really is fun.
      Apr 27
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      Yes, during my masters some people tried to push slack and most just stuck with Groupme and outlook
      Apr 27
    • Cruise Automation plantent
      Nobody pushes Slack. Devs pull it.
      — In what way is Slack “fun”
      This reads like a parody of out of touch corporate Microsofties. But hey, that’s Poe’s law.
      Apr 28
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      1)I actually used slack during my MBA before I joined Microsoft. I said so on my previous comment.
      2) out of touch is you that think dev is the role that dictates enterprise productivity software. I bet you never worked in non tech. You remind of Snap chat fans before Facebook crushed their gorwth.
      3) not saying Slack will cease to exist but it will and is already slowing down it's growth.
      Apr 28
  • RetailMeNot qtlg72
    If you notice most of the support for Teams is from Microsoft employees. Reality check: Slack is a hell of a lot of a better product that’s more cross-platform and integration friendly. Video conferencing within it is damn good, and most tech-centric companies that don’t rely on the Microsoft ecosystem prefer it over anything else. Damn great product that has much better pricing practices than anything else out there.
    Apr 27 5
    • SAP Man
      Better pricing? Why are you lying? Office 365 price per user, which includes Teams, depending on your plan, is comparable or less than the price per user for Slack. Zero reason for any large enterprise to use Slack when they have Teams for free. Not advocating for teams, but stop lying. Slack doesn't make sense when you have Teams for free.
      Apr 27
    • MSFT folks should support their product. Thats the right thing to do ..even if their product is inferior and not as popular. They get a pay check so choose to show loyalty - nothing wrong with that.
      Apr 27
    • Microsoft laug
      Slack has better video conferencing, are you sure. Slack can’t have anything built natively other than chat; it relies on the third party only. There are many free users but not much paid. I won’t be surprised. Teams will have 80-90M users in 1 year or so. Slack can’t catch up to that. Slack comparing to Teams is like a knife compared to Nuclear weapon. These arguments were there on Teams launches; all proved wrong. Teams are silently spreading, already have 25M MAU.
      Apr 28
    • Airbnb 0x00000000
      @makeitbig “Msft folks should support thejr product”
      No. They should think critically about their product and take critical feedback seriously rather than putting their fingers in their ears and shouting when the overwhelming majority of the tech community is telling them that they’re behind. But hey, this has never been Microsoft’s strong suit, so no surprises here.
      Apr 29
    • Lol ! Can’t change core DNA just by bringing
      in new leaders.
      Apr 29
  • Airbnb aEFO20
    Slack did double their revenue every year for the last 3 years. It is very impressive when compared to Uber’s 30% growth
    Apr 27 6
    • Aww .. you hurt his feelings :)
      Apr 27
    • Uber / Eng
      uberipo

      Uber Eng

      PRE
      Google
      uberipomore
      It just factually a stupid comparison...
      Apr 27
    • Wish jeano
      Hmm you know, people from Airbnb
      Apr 27
    • Airbnb aEFO20
      Woah woah, chill LOL
      Apr 27
    • Uber / Other thEI07
      More difficult to grow at a higher scale than lower scale. Doubling hundred million vs +30% multi-billions 🤷🏽‍♂️
      Apr 30
  • SAP Man
    Potentially dumb question, but what the fuck is Slack blowing all their money on, other than infrastructure? The app hasn't changed much in years, and they don't really advertise. Are they employing too many Project Managers in charge of gluten-free options for office lunch?
    Apr 27 5
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      Probably on staff. 1000 people earning 200k probably eats all their margin
      Apr 27
    • SAP Man
      But what's all their staff doing? Not much for the Slack core, no real new features in years, very little advertising. Was that ugly new logo that expensive?
      Apr 27
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      You can't sell enterprise software without a bunch of Sales people. Probably half engineering team work on unlaunched products/features
      Apr 27
    • SAP Man
      Chatting in channels 2.0, chatting's killer app!
      Apr 27
    • Booking.com B.pain
      They have a $50m/year *minimum* contract with AWS, to start with. Wonder what makes it so inefficient.
      Apr 28
  • Microsoft
    Tier 1

    Microsoft

    BIO
    #1 in Prestige
    Tier 1more
    How is it even possible that they’re losing money
    Apr 27 8
    • Microsoft
      Tier 1

      Microsoft

      BIO
      #1 in Prestige
      Tier 1more
      They don’t even host video calling right? How would cloud bills even be an issue
      Apr 27
    • VMware / Eng
      PJLD43

      VMware Eng

      BIO
      Sr MTS.
      PJLD43more
      They integrate with others and have something specific for mobile
      Apr 27
    • VMware / Eng
      PJLD43

      VMware Eng

      BIO
      Sr MTS.
      PJLD43more
      They have their own, plus you can use zoom or s4b. Though admins control that
      Apr 27
    • SAP Man
      They're hiring too many people in PR, and they aren't doing any PR.
      Apr 27
    • New / Eng daan
      That's why slack engineers have highest WLB in tech and high TC.
      Apr 27
  • This comment was deleted by original commenter.

    • Microsoft MSFT->DOCU
      This should be top comment, good work
      Apr 29
    • Great work .. for a product with no adoption or future .. at least there is documentation now
      Apr 29
    • Microsoft / Sales
      FUPM

      Microsoft Sales

      PRE
      Connection, Allstate Financial Services, LLC
      FUPMmore
      What company do you work for? Makeitbig?
      Apr 29
    • MSFT 👍
      Apr 29
  • Wish jeano
    I had bad exp with talking to their recruiters, seems like none of them knows their business model. I asked very common questions like who do you work with and how do you want to scale other than being considered as a chat app, she responded “We are not a chat app, and ... why would you ask?”
    Apr 27 8
    • Wish ?
      Apr 28
    • Intuit readyTo🔥
      It’s an app with product listings with beautiful photos but is knock off garbage from China. Has everything from Rubik’s cubes to wedding dresses. Things rarely come as described. Also it takes weeks to get here.
      Apr 28
    • Wish jeano
      You don’t have to, you’re not target user anyway
      Apr 28
    • Wish jeano
      I think whole thread are talking about they are no more than a chat app, I don’t feel anything wrong with saying that. That’s based on reading and research. It’s their recruiters’ job to convince me what they truly are or develop as, they contact me, not the other way.
      Apr 28
    • She probably didn’t have time to explain .. There is a line out the door to get in
      Apr 28
  • Adobe tetr@
    Teams is so much better than Slack for collaboration and for those who are already in the O365 ecosystem. The thing integrates beautifully.
    Apr 28 7
    • Adobe tetr@
      If you have used both Slack and Teams, you would know the answer. Teams is significantly superior to Slack when it comes to collaboration.

      Here’s a few things: editing office documents within the app, scheduling meetings including a channel and also booking rooms, video calls with a group, a central view of all documents across all Office apps that you have edited or accessed recently. There are several more examples. Slack just falls short in all these areas.

      On the cosmetic front, Teams has had dark mode since like forever. Slack just keeps defferring it. On the flip side I totally hate Teams' lack of good keyboard shortcuts. For a company whose products are landmines of shortcuts, Teams is an outlier.

      I will give it to Slack for disrupting the communication space, but they are not large enterprise ready.
      Apr 28
    • Uber Yol0$
      And they cost more than Office 365 suite. No thanks
      Apr 28
    • Adobe tetr@
      Yes the pricing is crazy. It's a matter of time before companies that cannot afford both solutions opt for one, and when that happens Slack may be on the chopping block.

      The only thing preventing Teams from replacing Slack is an anti Microsoft mentality than the product itself
      Apr 28
    • Teams will end up like google plus
      Apr 28
    • Uber Yol0$
      More people already use Teams more than Slack
      Apr 28
  • PayPal pplw
    I think MSFT teams is ready to kill this
    Apr 27 2
    • VMware / Eng
      PJLD43

      VMware Eng

      BIO
      Sr MTS.
      PJLD43more
      We have paid for all of them and only end up using slack
      Apr 27
    • Apple Snut Ella
      Slack is probably better. It’s also largely irrelevant. Teams doesn’t have to be better, it only needs to be good enough. And it is. Why would I buy a third party app with its inherent operational costs and security and compliance concerns when 90% is already included in my enterprise stack?
      Apr 28
  • Tesla uhhyhhgh
    Mattermost on prem is free.
    Apr 27 6
    • Uber YouBeer
      Uber built internally
      Apr 27
    • Tesla uhhyhhgh
      Not sure what’s the point building something new which already exists, open source and works just fine.
      Apr 27
    • Uber zzzz5
      Yes, really. Hipchat was failing all the time because of too many users. Slack wasn't interested in supporting large customers then. So Mattermost was selected but even it wouldn't scale without internal engineering work to sup it up.
      Apr 28
    • GrubHub / Eng
      lumpydog

      GrubHub Eng

      PRE
      Qualcomm
      lumpydogmore
      Bc uber needed something that deleted messages for plausible deniability
      Apr 28
    • Amazon damned
      Amazon is the same way doesn't trust other companies with any data. That's why slack is on the unapproved software list ( and because they're cheap af)
      May 2
  • Cisco @/
    Ahem..there is something called Cisco WebEx Teams :)
    Apr 27 3
    • VMware / Eng
      PJLD43

      VMware Eng

      BIO
      Sr MTS.
      PJLD43more
      Its loosing market share.
      Apr 27
    • Amazon / Eng
      QLLw43

      Amazon Eng

      PRE
      Comscore, Inc.
      QLLw43more
      Webex is even worse than Chime
      Apr 27
    • Microsoft / Sales
      FUPM

      Microsoft Sales

      PRE
      Connection, Allstate Financial Services, LLC
      FUPMmore
      Pandawanda, less blind more work into the next expansion! Come on man! PS my WOW account has been active for 13 years AND still loving it.
      Apr 29
  • Roku
    ⛽️

    Roku

    PRE
    Yahoo
    ⛽️more
    Slack is just a chat application with first to mover advantage. There is nothing proprietary there; easy to replicate. I don’t understand why is a chat app going to be a public company. It is just one single product and not a company.
    Apr 27 1
    • This is correct, but their advantage is having gotten the best market share of integrations, which is what they do best.
      Apr 27