Hello and welcome back to our regular morning view of private companies, public markets and the gray areas in between.
This morning we take a look at Slack's customer growth at the current moment compared to what we know historically. We want to know if the current boom in customer growth at Slack is unprecedented for its business or if the company is just returning to earlier growth levels of the logo .
As with any modern in the software business (SaaS), Slack's revenue growth is not only due to net new customers. Slack is also increasing sales by selling more of its service to people who already have a paid account. Think of it this way: Slack can increase sales by selling new customers Alex And Friends Ltd . a ten seat license, or it can add another 5,000 seats to his existing account by selling Alex Actually Has No Friends Inc. . We’re going to look at the first case today.
Slack CEO Stewart Butterfield recently informed the world about the growth his company has reported. Slack announced to the world via a SEC announcement that 7,000 net new customers had been added in the current quarter, before the previous quarters, in which around 5,000 had been added. Last night, in a thread worth reading if you wanted to better understand what it is like to run a business in chaotic times, Butterfield found that the number had risen to 9,000 .
Of course, we only see a portion of Slack's accelerated growth in the face of the push to remote work being done in the face of rising COVID-19 infections; Slack also sells more of its service to existing customers, per CEO . But let's find out what we can know about these net customer add-ons and see if Slack sets new records or just gets his groove back. In the end, we will attribute all of this to the increasing demand that startups have seen in remote work in the past few weeks.