NYSE:WORK

Stock Analysis Report

Executive Summary

Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally.


Snowflake Analysis

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Slack Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WORK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

28.6%

WORK

9.6%

US Software

10.5%

US Market


1 Year Return

n/a

WORK

8.0%

US Software

-11.5%

US Market

Return vs Industry: Insufficient data to determine how WORK performed against the US Software industry.

Return vs Market: Insufficient data to determine how WORK performed against the US Market.


Shareholder returns

WORKIndustryMarket
7 Day28.6%9.6%10.5%
30 Day9.0%-7.8%-15.4%
90 Day29.9%-7.1%-21.4%
1 Yearn/a9.2%8.0%-9.6%-11.5%
3 Yearn/a100.6%92.0%12.6%5.4%
5 Yearn/a170.4%151.5%32.8%18.1%

Price Volatility Vs. Market

How volatile is Slack Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Slack Technologies undervalued compared to its fair value and its price relative to the market?

22.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WORK ($28.58) is trading above our estimate of fair value ($9.72)

Significantly Below Fair Value: WORK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WORK is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: WORK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WORK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WORK is overvalued based on its PB Ratio (22.4x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is Slack Technologies forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WORK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WORK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WORK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WORK's revenue (19.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WORK's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WORK is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Slack Technologies performed over the past 5 years?

-305.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: WORK is currently unprofitable.

Growing Profit Margin: WORK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if WORK's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare WORK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WORK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).


Return on Equity

High ROE: WORK has a negative Return on Equity (-78.51%), as it is currently unprofitable.


Next Steps

Financial Health

How is Slack Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: WORK's short term assets ($970.4M) exceed its short term liabilities ($519.9M).

Long Term Liabilities: WORK's short term assets ($970.4M) exceed its long term liabilities ($197.9M).


Debt to Equity History and Analysis

Debt Level: WORK is debt free.

Reducing Debt: WORK has not had any debt for past 5 years.


Balance Sheet

Inventory Level: WORK has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WORK's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WORK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if WORK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Slack Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WORK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WORK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WORK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WORK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WORK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Daniel Butterfield (46yo)

11.08s

Tenure

US$10,347,246

Compensation

Mr. Daniel Stewart Butterfield o-founded Slack Technologies, Inc. and has been Chief Executive Officer and Chairman since February 2009. He serves as President of Slack Technologies, Inc. Mr. Butterfield c ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD10.35M) is about average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Butterfield
Co-Founder11.08yrsUS$10.35m7.2% $1.1b
Allen Shim
CFO & Treasurer2.17yrsUS$3.80m0.37% $59.0m
Robert Frati
Senior Vice President of Sales & Customer Success2.08yrsUS$1.54m0.043% $6.8m
Cal Henderson
Co-Founder & CTOno datano data2.98% $471.9m
Brandon Zell
Chief Accounting Officerno datano data0.028% $4.5m
Jesse Hulsing
Head of Investor Relationsno datano datano data
David Schellhase
General Counsel & Secretary3.25yrsno data0.039% $6.2m
Julie Liegl
Chief Marketing Officerno datano datano data
Brad Armstrong
Vice President of Business Development & Corporate Developmentno datano datano data
Robby Kwok
Senior Vice President of Peopleno datano datano data

2.7yrs

Average Tenure

46yo

Average Age

Experienced Management: WORK's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Butterfield
Co-Founder11.08yrsUS$10.35m7.2% $1.1b
Michael McNamara
Director0.25yrno datano data
Graham Smith
Independent Director1.25yrsUS$1.75m0.038% $6.0m
John O'Farrell
Lead Independent Directorno datano data0.19% $30.4m
Edith Cooper
Independent Director2.17yrsno data0.025% $3.9m
Sarah Friar
Independent Director3yrsUS$3.02m0.073% $11.6m
Andrew Braccia
Independent Director10yrsno data0.062% $9.8m
Sheila Jordan
Independent Director0.50yrno datano data

2.2yrs

Average Tenure

56yo

Average Age

Experienced Board: WORK's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: WORK only recently listed within the past 12 months, with total shares outstanding growing by 228.1% in the past year..


Top Shareholders

Company Information

Slack Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Slack Technologies, Inc.
  • Ticker: WORK
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$15.858b
  • Shares outstanding: 556.81m
  • Website: https://slack.com

Number of Employees


Location

  • Slack Technologies, Inc.
  • 500 Howard Street
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WORKNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2019
8S0DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2019
WORKWBAG (Wiener Boerse AG)YesClass A Common StockATEURJun 2019
WORKS *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 2019

Biography

Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model. The company was formerly known as Tiny Speck, Inc. and changed its name to Slack Technologies, Inc. in 2014. Slack Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 04:18
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.