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Slack's Customer Growth Accelerates During the Pandemic
By: Statista | November 26, 2020

Salesforce is reportedly in advanced talks to acquire Slack Technologies, the company behind the popular workplace communication tool of the same name, in a deal that could be announced as early as next week, according to sources familiar with the matter. Slack has a market capitalization of $23 billion after its shares jumped by more than 35 percent on the news of the possible acquisition on Wednesday.

As hundreds of millions of people shifted to working from home in face of the COVID-19 pandemic, demand for workplace communication tools soared over the past few months. Having been a pioneer in the nascent field of cloud-based workplace communication, Slack was always one of the companies likely to profit from the disruptions caused by the coronavirus, and according to the company’s latest earnings report its customer growth did in fact accelerate during the crisis.

As the following chart shows, Slack had 130,000 paying customers by the end of the quarter ended July 31. That’s up from 110,000 at the end of January, meaning that the company added almost as many customers over the past six months as it did in the twelve months prior. Slack defines paid customers as organizations with at least three users on a paid subscription plan, and it registered particularly strong growth among its largest customers. While customer growth amounted to 30 percent year-over-year overall, the number of organizations spending over $1 million annually was up 78 percent over last year’s July quarter. Customers with more than $100,000 in annual revenue increased by 37 percent, also growing faster than the overall customer base.

Slack’s revenue amounted to $215.9 million in the past quarter, marking a 49-percent increase over the same period last year. The company has yet to become profitable though, with losses amounting to $75 million for the three months ended July 31.



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