Analyst Note| Dan Romanoff, CPA |
No-moat Slack Technologies released full results for its fiscal fourth quarter, completing the preliminary set of metrics released on Feb 25., and showing upside to guidance and street expectations. Salesforce.com’s acquisition of Slack remains on track to close late in the second quarter so Slack did not host a conference call to discuss results. Based on the available deal terms, we are maintaining our fair value estimate of $46 per share. This new fair value estimate 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 amid a global movement to enable remote work environments. We are confident that the deal closing as expected is a near-certainty and expect Slack shares to move toward our fair value estimate as the closing date approaches.