Slack, which is a workplace messaging application, has filed an amended S-1 with the U.S. Securities and Exchange Commission on this Friday, just weeks ahead of a direct listing that is expected to take place on the 20th of June.
In that document, Slack, which is an industry powerhouse for workplace communication, has included an updated look at its path towards future profitability plans, posting first-quarter revenues of $134.8 million on losses of $31.8 million. Slack’s revenues for Q1 represent a 67% increase from the same period last year when the company reported losses of $24.8 million on $80.9 million in revenue for Q1 of 2018.
For the fiscal year that ended on the 31st of January in 2019, the company had reported losses of up to $138.9 million on a total revenue figure of $400.6 million. That figure is compared to a loss of close to $140.1 million on a total revenue figure of $220.5 million that was reported on year prior in the fiscal year that ended on 31st January of 2018.
Slack is in the process of completing the final steps necessary for its direct listing on The New York Stock Exchange, where the company will trade its shares under the ticker symbol “WORK.” A direct listing is an alternative approach to the stock market that allows well-known businesses to sell directly to the market existing shares held by insiders, employees and investors, instead of issuing new shares. This is a method that lets startup companies to bypass the traditional roadshow process and avoid a good chunk of Wall Street’s IPO fees. This all means that Slack will be able to complete its IPO under a reduced budget, saving tons of money for the company in the process.
Spotify, which is a music streaming company that completed a direct listing in the year of 2018; Airbnb is also another highly valued venture capital-backed business that is also rumored to be considering a direct listing in 2020.
Slack is currently valued at $7 billion after raising $1.22 billion in VC funding from investors, including Accel, which owns a 24% pre-IPO stake, Andreessen Horowitz (13.3%), Social Capital (10.2%), SoftBank, T. Rowe Price, IVP, Kleiner Perkins and many others.