Slack Technologies is further moving ahead and launching a direct listing for its present shareholders. A direct listing is somewhat different from IPOs. In this process, companies don’t release new shares. A company going for direct listing route allows its existing shareholders to sell their stocks. Instead of making their share public they raise money through their present shareholders. Slack Technologies is a business chat application development firm.
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Stock Market News – Slack aims to perform better than Spotify
Spotify is further not performing well after its direct listing. Slack is hopeful that it will have a better fate than Spotify. The reason behind Spotify’s slow performance is not well known. It is only 3% up from its reference price. Further, the surprising part is that the shares of Spotify are down 18% than what they were at the time of opening.
Slack’s revenue declaration
In the last fiscal year, Slack had announced annual revenue of more than $400 million. It is having an amazing run as it is witnessing an amazing rise in revenue by 82%. The company is making it clear that it will change the pricing model at regular intervals. Slack is continuously witnessing an upward trend. The investments and growth of the company will increase on a year on year basis. This direct listing can see a positive result.
Slack relies on some top firms
The annual filing of Slack shows that its revenues rely on some top players. There are more than 88,000 paid customers using Slack’s application. Further, among those 88,000 paid customers 575 customers have annual revenue of more than $1,00,000. These firms contribute more than 40% to Slack’s annual business. Along with this, there are huge numbers of customers that use Slack’s free service. The company follows a policy of billing the customers depending on the number of users it has.
