Slack, among many other virtual work tools, is seeing a sharp increase in coronavirus-related use. But the push to Slack won’t fade after the pandemic subsides, according to CEO Stewart Butterfield.
Butterfield went on Twitter on Thursday to describe what it was like at the helm of Slack, as well as to announce some updated metrics. Slack Actions (WORK) – Receive the closed 10% higher ratio on Thursday for $ 28.48.
Slack added 9,000 new paid customers between February 1 and March 25, Butterfield said, an 80% increase over the quarterly total of previous quarters. At the same time, simultaneously connected users have grown to 12.5 million as of Wednesday, from 10 million two weeks ago. And the rate of creation of the rate of creation of new Slack workspaces (which the company believed was created by businesses) increased by hundreds of percent from March 12 2020 to March 25 2020
The question for investors is: how much of this growth is sustainable? And between Slack, Microsoft (MSFT) – Get report team, Zoom (ZM) – Get reports and other business apps right away that see a huge increase in usage, who will win in the long term?
At an investor conference hosted by RBC Capital Markets on Thursday, Butterfield warned that “there will be absolutely a partial revision of the average” in Slack’s growth rates once the crisis subsides.
It is also impossible to model expectations correctly, given the unknown trajectory of the virus, how long diffuse work scenarios could last from home and how many companies could reduce or fold completely in the coming months, he said. However, behavioral changes from customers will survive the pandemic.
“We are seeing a profound introduction (at Slack) that is difficult to achieve,” said Butterfield, reiterating that the company’s goal is not necessarily to encourage more remote work, but to make employees more responsive and agile .
“This is the fundamental competitive advantage that runs through any organization,” he added.
Slack is far from the only beneficiary of the sudden baptism for fire facing remote workers.
Zoom and Cisco’s WebEx, among other apps, have seen a significant increase in usage in countries heavily affected by the coronavirus epidemic. And Microsoft Teams, one of Slack’s main rivals, recently added 12 million users in a week, according to Microsoft.
Slack’s critics have questioned his ability to compete effectively with Microsoft, given Microsoft’s formidable competitive advantages and the existing ecosystem of ubiquitous corporate products. But Butterfield is not overly concerned, saying that the spate of remote work has highlighted the differences between them – as well as the most relevant metrics for each one – which have so far been difficult to communicate.
“When we think back to this time … that more people have used Teams won’t be relevant to us as a company,” he said.
He urged investors to pay attention to Slack’s growth in paying customers as a zero-on metric in the short term and claimed that the viscosity of its product, particularly within larger organizations, bodes well for Slack in the long run. .
“Go find a customer in the world who paid us a lot of money … who doesn’t pay us that much anymore. Good luck,” he said.
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