Skip to Content

Slack Technologies Inc WORK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Solid Quarter for Slack; Salesforce Deal on Track for July Close; FVE Still $46

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

No-moat Slack released results for its fiscal first quarter that we characterize as solid. Because the company is being acquired by Salesforce in a deal expected to close in July, the company did not host a call to review results. Slack did not provide guidance last quarter, so meaningful comparisons to consensus are fuzzy. The company took the same approach this quarter and offered no outlook in the release, which is not a surprise in what we expect to be the company’s last quarterly earnings report. We see both revenue growth and various metrics as on a positive trajectory for when Salesforce takes over by the end of July. Based on the available deal terms, we are maintaining our fair value estimate of $46 per share, which is equivalent to $26.79 per share in cash plus the 0.0776 shares of Salesforce. We continue to see the value proposition in Salesforce integrating Slack’s collaboration platform amidst a global movement to enable remote work environments. We are confident that the deal closing as expected is a near-certainty at this point and expect Slack shares to move towards our fair value estimate as the closing date approaches.

Read Full Analysis

Company Profile

Business Description

Slack Technologies operates Slack, a software-as-a-service platform that brings together people, applications, and data. The platform is appropriate for all business types, from small and medium-size businesses to enterprise customers. The company was founded in 2009 as a game developer but later changed its focus and released its internally developed toolset, Slack, in 2013. It is headquartered in San Francisco.

Contact
500 Howard Street
San Francisco, CA, 94105
T +1 415 630-7943
Sector Technology
Industry Software - Application
Most Recent Earnings Apr 30, 2021
Fiscal Year End Jan 31, 2022
Stock Type Speculative Growth
Employees 2,597

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.