Slack IPO - Enterprise Customers and User Information
In finding information about Slack's Enterprise customers and users, your research team found that there are 150 enterprise users on Slack's Enterprise Grid plan and there are approximately 5,100 users per enterprise customer. The methodology and calculations there were used are explained in more detail below.
SLACK ENTERPRISE CUSTOMERS AND USERS
- One definition of a large enterprise is an ARR of greater than $100,000. Slack had 575 paid customers with an ARR greater than $100,000 as of January 31, 2019. That accounted for 40% of revenue in FY 2019.
- According to Slack's IPO prospectus filing, large enterprises are those that have more than 5,000 employees. They define medium-sized organizations as those that have 250 to 5,000 employees. However, they do include medium-sized organizations with over 1,000 employees in the definition of 'enterprise'.
- There are 150 enterprises that are using Enterprise Grid, according to the most recent figures. They have 65 customers in the Fortune 100.
NUMBER OF AVERAGE USERS PER ENTERPRISE CUSTOMER
- In 2015, a year after their founding, there were 168 users per company, with 60% of those being large enterprises.
- The most recent figures state that Slack had over 3 million paid seats/users. According to estimates, there is now an average of 5,100 users per enterprise customer.
We started our search by looking though Slack's IPO prospectus filing. They defined large enterprises as greater than 5,000 employees with medium-sized businesses going from 250 to 5,000 employees. However, we found proof that they consider some medium-sized businesses as enterprise customers too, with 'enterprise' starting at 1,001 employees and 'large enterprise' starting at 7,501 employees. Even though the definition of a large enterprise is different, there is a good overlap for 'enterprise' with 1,000 employees and up, which is why we used figures for enterprise from both their IPO filing and other sources. Also, according to the filing, the Enterprise Grid plan was designed only for large operations, which shows that 100% of these customers will fall within this range. Calculations were made as it relates to Enterprise Grid customers, and not enterprise customers without this plan.
Since the filing did not have any mention of users per enterprise customer, we resorted to calculating our own estimates. We found the total number of paid seats/users and in the IPO filing we had the number of paying companies, so we found the percentage of Enterprise Grid customers as it relates to the total number of paid customers, then used that to find the average of users per Enterprise Grid customer. Calculations are explained in more detail below.
Percentage of enterprise grid customers to overall paid customers = (number of enterprise grid customers / number of paid customers) * 100%
= (150/88,000) * 100%
= 0.0017 * 100%
Since the number of paid customers (companies) is 88,000 and they have in total 3,000,000 users, we only need to use the percentage of enterprise grid customers in relation to the total number of paid customers to find the number of users per company on the enterprise grid plan.
= 3,000,000 * 0.17%
= 5,100 users per Enterprise Grid customer