Below is an excellent written history of Slack
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Posted On: 06/08/2020 10:38:44 AM
Below is an excellent written history of Slack
They also mapped the number of users to paid user
I like the section on ARPU and Customer Acquisition Cost (CAC)
Elephants, Moose, Rabbits, Mice, Flies...
And the company examples they give of who is in which catagory
Also like the part when Slack first started off they called it a preview rather than beta
"But if the users are in the “preview” camp, they are one of the elite few who get to use the product before anyone else and enjoy its privileges of being first"
https://www.singlegrain.com/casestudies/growt...n-history/
This site shows their ARPU $9.5
https://www.statista.com/statistics/1025246/w...-per-user/
"The quality element is paying off. As of April 30, 2019, Slack had more than 95,000 organization with three or more users on a paid subscription plan. The company calls these "paid customers" and they make up about 16% of the total user base, which is 600,000."
16% are paying. 84% are not paying.
https://www.investopedia.com/articles/investi...-money.asp
"We define an organization as a separate entity, such as a company, educational or government institution, or distinct business unit of a company, that is on a subscription plan, whether free or paid. Once an organization has three or more users on a paid subscription plan, we count them as a Paid Customer, and when disclosing the number of Paid Customers, we round down to the nearest thousand."
"As of April 30, 2020, we had more than 750,000 organizations with three or more users on either a free or paid subscription plan."
"As of April 30, 2020 and 2019, we had approximately 122,000 and 95,000 Paid Customers, respectively."
122K / 750K = 16.26%
They went from 95,000 organizations to 750,000 organizations in one year and still only average 16% paying.
That doesn't even include the organizations with one or two users
"As of April 30, 2020, we had 963 Paid Customers >$100,000, who contributed approximately 49% of revenue for the three months then ended. As of April 30, 2019, we had 645 Paid Customers >$100,000, who contributed approximately 43% of revenue for the three months then ended."
Almost 1/2 of their revenue comes from the 963 elephants
Now if they did have 12M users and 16% are paid, maybe they only have 2M paid users?
$66M mo / $2M = $33/mo per user
There pricing model would suggest more of their user base are paying than 16%
https://slack.com/pricing
Although they have a ton of app partners and do get a split of that.
They also mapped the number of users to paid user
I like the section on ARPU and Customer Acquisition Cost (CAC)
Elephants, Moose, Rabbits, Mice, Flies...
And the company examples they give of who is in which catagory
Also like the part when Slack first started off they called it a preview rather than beta
"But if the users are in the “preview” camp, they are one of the elite few who get to use the product before anyone else and enjoy its privileges of being first"
https://www.singlegrain.com/casestudies/growt...n-history/
This site shows their ARPU $9.5
https://www.statista.com/statistics/1025246/w...-per-user/
"The quality element is paying off. As of April 30, 2019, Slack had more than 95,000 organization with three or more users on a paid subscription plan. The company calls these "paid customers" and they make up about 16% of the total user base, which is 600,000."
16% are paying. 84% are not paying.
https://www.investopedia.com/articles/investi...-money.asp
"We define an organization as a separate entity, such as a company, educational or government institution, or distinct business unit of a company, that is on a subscription plan, whether free or paid. Once an organization has three or more users on a paid subscription plan, we count them as a Paid Customer, and when disclosing the number of Paid Customers, we round down to the nearest thousand."
"As of April 30, 2020, we had more than 750,000 organizations with three or more users on either a free or paid subscription plan."
"As of April 30, 2020 and 2019, we had approximately 122,000 and 95,000 Paid Customers, respectively."
122K / 750K = 16.26%
They went from 95,000 organizations to 750,000 organizations in one year and still only average 16% paying.
That doesn't even include the organizations with one or two users
"As of April 30, 2020, we had 963 Paid Customers >$100,000, who contributed approximately 49% of revenue for the three months then ended. As of April 30, 2019, we had 645 Paid Customers >$100,000, who contributed approximately 43% of revenue for the three months then ended."
Almost 1/2 of their revenue comes from the 963 elephants
Now if they did have 12M users and 16% are paid, maybe they only have 2M paid users?
$66M mo / $2M = $33/mo per user
There pricing model would suggest more of their user base are paying than 16%
https://slack.com/pricing
Although they have a ton of app partners and do get a split of that.
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