Slack this week announced it expects to raise $196.5 million through a direct listing on on the NYSE. In the S-1 filed with the SEC, Slack reported more than 10 million daily active users worldwide, up from the 8 million reported around this time last year, and is profitable enough to list its approximately 117 million Class A common shares without underwriting. Slack is the first high-profile software company to IPO via direct listing since Spotify in April of 2018, indicating the predicted increase in direct listings by profitable SaaS companies is beginning to manifest.
The world of B2B marketing intelligence this week saw Salesforce launch a Datorama marketplace to grant marketers access to its marketing intelligence capabilities through available apps. Developers will have access to Datorama’s AI as well as the full technology stack to build apps for marketers more easily. Apps built for Datorama will also become available on the Salesforce App Exchange.
In cloud software news, open-source sharding MySQL solution, PlanetScale, has recently landed a $22 million Series A led by Andreessen Horowitz, for their creative approach to helping companies scale technology. Once considered a competitor of AWS, PlanetScale now works in tandem with the cloud giant to offer companies support through its Database-as-a-Service function based on Vitess (which played a key role in scaling YouTube). The company also helps businesses remain GDPR-compliant by facilitating the storage of data in the same locality of the end user.
New in SaaS business listings this week we have a $411K B2B Chatbots and Workflows business, operating powerful business fundamentals with a high and growing MRR and a strong LTV of c.$220. The business has a remarkable traffic profile for a SaaS business with over 3.1 million pageviews, well-developed partnerships, creating a clear competitive advantage, is amongst the market-leaders in a lucrative and growing niche and has extensive operational track record spanning c.5 years. If you are interested in this business, please follow the link to request a prospectus.
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Continue reading below for more on Slack’s direct listing, Salesforce’s Datorama marketplace and PlanetScale’s Series A.
- Robust business fundamentals with a high and growing MRR and a strong LTV of c.$220
- Remarkable traffic profile for a SaaS business with over 3.1 million pageviews
- Well-developed partnerships, creating a clear competitive advantage
- Amongst the market-leaders in a lucrative and growing niche
- Extensive operational track record spanning c.5 years
Yearly net profit: $125,000
Asking price: $411,000
- Robust business fundamentals with upward-trending net income and a strong LTV of c.$820
- Close relationship with notable third-party software provider, which is difficult for competitors to mimic
- Secured a strong foothold in a rapidly growing niche
- Successful history of organic growth with several untapped growth opportunities
Yearly net profit: $96,000
Asking price: $331,000
*Corrected from 5/24 listing email*
- Excellent operational traction helping establish a firm footing in the digital marketing niche
- Robust product offering enabling the business to serve over c.5,600 paying customers
- Diversified revenue channels with room for further expansion
- Scalable cost structure with high gross margin of c.74.7% in the LTM
- Minimal owner involvement creating plenty of time to invest in growth
Yearly net profit: $102,000
Asking price: $330,000
In the News…
Slack Expects to raise $196.5 million in Direct Listing
Slack announced on Monday of this week that they expect to raise $196.5 million in a direct listing on the NYSE.
Initially filed under ticker SK, Slack changed its ticker to WORK. This is closely linked to Atlassian (which has stake in Slack) trading as TEAM on the Nasdaq. Slack is the most recent tech company to go public in 2019, following Uber Technologies Inc, Lyft Inc, Pinterest Inc, and Zoom Video Communications. Due to a recent estimate of the amount of shares necessary for when the stock begins trading, Slack has registered 117 million Class A shares. Slack’s decision to list directly is a deviation from the traditional IPO route, and indicates that it has enough cash on hand for fundraising to not be the main concern.
Slack announced in April its intention to raise up to $100 million in the IPO.
PlanetScale Raises $22 million in Series A
PlanetScale, the company that invented the technology responsible for scaling YouTube, announced they are now selling their tech to any business searching for a way to keep their data secure and accessible simultaneously.
PlanetScale has the ability to re-shard databases while in operation, thus allowing businesses to solve issues associated with GDPR (GDPR requires these businesses to keep data in the same vicinity as the user associated with it). PlanetScale has earned the $22 million Series A due to their potentiality to be a frontrunner in computing that competes and compliments Amazon’s AWS. The company has skyrocketed from the $3 million raised just one year ago; Andreessen Horowitz, the Cultural Leadership Fund and head of the US Digital Service Matt Cutts, are taking the company to new heights.
Peter Levine is now on the PlanetScale board to assist with the enterprise launch.
Salesforce Launches Datorama Marketplace
Salesforce and Datorama have recently teamed up to create a marketplace for agencies and brands to work and create apps employing Datorama’s marketing intelligence.
This newfound marketplace allows app developers to create apps on the established Datorama platform in addition to the Salesforce AppExchange. Now, apps developed on the updated Datorama platform will be available on the Salesforce AppExchange. This consolidation simplifies the system when compiling a data report as well as helping marketers’ visibility so they can thus make smarter investments and analyze performance.
To access this new marketplace, users will need to be Datorama customers, and once they are, all apps on the Datorama platform will be available on Salesforce AppExchange.