Slack Usage and Paid Customer Base Soar Amid Pandemic

Slack Technologies shares advanced after the collaboration-platform company’s chief executive, Stewart Butterfield, tweeted that during the coronavirus outbreak, as people work from home, the company added thousands of new paid subscribers.
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Slack Technologies  (WORK) - Get Report shares on Thursday advanced after the collaboration-platform company’s chief executive, Stewart Butterfield, tweeted positive data concerning its performance during the coronavirus outbreak.

He noted the hardships the pandemic has caused. “At this point millions have lost their jobs. Others have jobs but are forced to put themselves at risk,” Butterfield wrote.

“Those of us fortunate enough to have a job they can do at home are not really set up for remote work. There’s a pandemic: schools closed, no childcare, families separated.”

And that creates opportunities for Slack.

“For us as a company, the shift is dramatic. In each of Q3 and Q4, we added around 5,000 net new paid customers,” Butterfield tweeted.

“By last Tuesday, halfway through Q1, we had added 7,000. Yesterday, a week later, we crossed the 9,000 mark.”

And existing customers are expanding their usage, he said. “Enterprise deals are getting done. More new teams are signing up. More upgrading to paid plans.”

Intensity of usage also is climbing, according to Butterfield. “People are spending more time in Slack. Average messages sent per day per user is up 20%.”

Other technology companies are seeing vastly increased usage during the coronavirus as well. 

But it’s not clear that the elevated usage will boost all the companies’ financial performances. That’s because the cost of operations has gone up for many of the companies during the pandemic, and some of their services are free.

At last check, Slack shares traded at $29.82, up 15%.