Our valuation model for Slack Technologies Inc., (NYSE: WORK) estimates a target price of $29.20 by Oct 31st 2020 with a “Hold” rating on the stock.
Slack Technologies is currently not profitable and their operational expenses increase as they add customers. The company owed short-term debt (around 1.0 million) to its suppliers and there was a 65.91% increase in the operating cost since July 31st 2019.
Analysis indicates that there is some interest in Institutional Investment Managers to increase their holdings in the stock, which may help boost the stock price.
A detailed report can be downloaded here.
Company Fundamentals
Slack Technologies Revenue grew by 60% in Q3 of 2019, expenses by 47%, and were able to generate a gross profit of $145 Million in the same period. The company also reported an operating income loss of $95 Million.
The company may have sold most of its services on credit or owes a refund to its customers in the past, and that the situation had improved as of Oct 31st 2019. It has significantly reduced its employee liabilities. Some of the reasons of negative net income are
- The company owed short-term debt (around 1million) to its suppliers
- A 65.91% increase in the operating cost, due to the company challenges in scaling their operations since July 31st 2019
Business Summary
Slack Technologies, Inc. operates a business technology software platform that brings together people, applications, and data and sells its offering under a software-as-a-service model. The Company was incorporated in Delaware in 2009 as Tiny Speck, Inc. In 2014, the Company changed its name to Slack Technologies, Inc. and publicly launched its current offering. The Company is headquartered in San Francisco, California. Below are the company statistics as of Oct 31st 2019.
Insider Trading Activity
There is a slight increase in the number of shares the insiders sold recently, after the initial profit taking back in June 2019.
Disclaimer
The information provided in the document is for general informational and educational purposes only and is not intended to provide specific investment advice.
The data and content presented herein is only as reliable as the sources from which it is obtained, and the accuracy and completeness of the information presented cannot be guaranteed. You agree to indemnify Daizika LLC, all its employees, officers, directors, managers and author(s) of this blog and hold it harmless from any actions, claims, proceedings, or liabilities arising from your use of the Content.
You agree that Daizika LLC and the Author is not liable for any success or failure of your business that is directly or indirectly related to the use of our information.
A company’s actual performance could greatly differ from those described in any forward looking statements or announcements mentioned in this report.
All statements and expressions are the sole opinion of the author and are subject to change at any time without notice.