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SLACK IS PLANNING ON MAKING ITS DEBUT ON THE NEW YORK STOCK EXCHANGE ON JUNE 21. HOWEVER, THE COMPANY ISN'T GOING THE MORE TRADITIONAL ROUTE OF AN INITIAL PUBLIC OFFERING - INSTEAD, IT PLANS ON GOING PUBLIC THROUGH A DIRECT LISTING.

HERE ARE THREE THINGS INVESTORS NEED TO KEEP IN MIND AS THEY WAIT FOR THE COMPANY TO GO PUBLIC.

THE FIRST THING TO NOTE IS THAT SLACK IS LOOKING FOR A MARKET VALUE OF $16 TO $17 BILLION. THIS FIGURE IS MORE THAN TWICE WHAT IT WAS IN ITS MOST RECENT PRIVATE VALUATION IN 2018.

THE COMPANY HAD PREVIOUSLY BEEN VALUED AROUND $7 BILLION.

THE LAST TIME A MAJOR COMPANY WENT PUBLIC THROUGH A DIRECT LISTING WAS SPOTIFY, WHICH WENT PUBLIC BACK IN SPRING OF 2018.

HOWEVER, OVER THE PAST YEAR, SPOTIFY IS DOWN 12%.

BUT BEFORE YOU GET TOO FOCUSED ON THE DIRECT LISTING ASPECT - LET'S TAKE A LOOK AT THE INVESTORS NEED TO KNOW, WHICH IS THE COMPETITION IT FACES FROM COMPANIES SUCH AS MICROSOFT AND THEIR FREE-TO-PREMIUM CONVERSION.

BLOOMBERG INTELLIGENCE ANALYSTS THINK THAT A KEY METRIC TO WATCH IS THE FREE TO PREMIUM CONVERSION. THEY BELIEVE THAT 55 TO 65% OF REVENUE GROWTH IN THE NEXT YEAR COULD BE DUE TO THE FREE-TO-PREMIUM CONVERSION.

AND, OF COURSE, INVESTORS SHOULD KEEP A CLOSE EYE ON HOW MICROSOFT IS DEVELOPING PRODUCTS TO COMPETE WITH SLACK.

WILL SLACK PULL A SPOTIFY, OR FOLLOW IN BEYOND MEAT'S FOOTSTEPS?

IT ALL DEPENDS ON WHETHER OR NOT YOUR COMPANY SWITCHES TO PREMIUM.

Can you Slack that?

Slack is officially coming to the public markets later this week.

But don't get confused -- it's not IPOing like Beyond Meat (BYND) or Fiver (FVRR) . Instead, the company is following in Spotify's footsteps and going public through a direct listing. 

What is a direct listing and how is it different than an IPO? To break it down very simply:

A direct listing allows a company to go public without an underwriter. 

An IPO is the companies first sale of stock issued by a company. The companies who IPO have underwriters--generally banks--that help the company price and aid with regulatory requirements.

But, if you want to better understand the difference between the two, TheStreet has a video breaking them down.

Looking forward to Friday, what should investors keep an eye on?

Well, the first thing to note is that Slack is looking for a market value of $16 to $17 billion. This figure is more than twice what it was in its most recent private valuation in 2018, when it was valued around $7 billion.

And the other two include Spotify's performance (SPOT - Get Report) since it direct listed back in the spring of 2018 and Bloomberg Intelligence believes that the free to premium conversion will boost revenue growth up to 65% in the next year. 

Related. Slack Looks Poised for a Red-Hot IPO -- Perhaps Too Hot

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