ACTUAL RESULTS.
3 MONTHS ARE ACTUALLY GOOD.
IT WAS A BIT OF THE TOP LINE OF
THE BOTTLE IT WAS WE SHOULD
TALK MORE ABOUT IT AND WE
SHOULD DO IT RIGHT NOW BECAUSE
AS WE.
WAS THE VERY FIRST ROUND
OF EARNINGS FOR SLAG AS A
PUBLIC COMPANY COMING OUT OF
COURSE ON
WEDNESDAY AFTERNOON. WE GOT OUR
RAY WONG PRINCIPAL ANALYST AND
FOUNDER OF CONFLICT RESEARCH ON
WITH US RIGHT AWAY GREAT TO SEE
YOU HERE AND IF A REACTION TO
THE RESULTS FROM YOUR
PERSPECTIVE.
>> SO THE SO THE EARNINGS ARE
BAD RIGHT, BUT
THE CHALLENGES UNIT GROWTH IS
WHAT PEOPLE ARE CONCERNED ABOUT
THE QUESTION IS ARE THEY
PICKING UP MORE USERS ARE
GETTING MORE DAILY ACTIVE USERS
OF WHAT IS THAT COMPETITION
LOOK LIKE WITH MICROSOFT TEAMS
AND FACEBOOK AND GOOGLE.
>> HOW BIG OF A
THREAT IS MICROSOFT GREG
BECAUSE THAT SEEMS
TO BE A HUGE ISSUE FOR THE
COMPANY MOVING FORWARD AS IT
LOOKS TO NOT ONLY GET MORE
CLIENTS BUT ALSO. TRANCE A
TRANSFORM THOSE FREE CLIENTS TO
PAYING CUSTOMERS.
>> IT IS A BIG ISSUE BECAUSE
WHEN YOU LOOK AT MICROSOFT'S
NUMB HERS AND THEY'RE GOING TO
ANNOUNCE THEM IN THE
NEXT MONTH, RIGHT THEY'RE GOING
TO SHOW THAT THEY'VE GONE FROM
13 MILLION DAILY ACTIVE USERS
TO ALMOST 15 16 BILLION MILLION
DAILY
ACTIVE USERS. SLACK IS SITTING
AT ABOUT 10 10 MILLION DAILY
ACTIVE USERS. THE QUESTION IS
WHAT'S THE CONVERSION RATE
BETWEEN FREEMIUM TO PREMIUM AND
THAT'S REALLY THE ISSUE THAT
YOU'RE ASKING AND THAT'S WHAT
EVERYBODY WANTS TO KNOW IS THAT
GOING
TO BE MORE PROFITABLE SO FAR
THEY HAVEN'T DONE A BAD JOB
RIGHT THEY GOT A 100,000 PAID
CUSTOMERS AND THAT'S THE NUMBER
PEOPLE WORRY ABOUT THE BUT IT'S
ALSO ABOUT ARE YOU ADDING USERS
FASTEN UP AND MICROSOFT IS IN
EVERY SINGLE
FORTUNE, 5 ACCOUNT FOR ALMOST
EVERY GLOBAL 2000 ACCOUNT AND
THAT'S THE QUESTION IS ARE YOU
CAN GET THE STUFF THAT COMES
WITH THE PACKAGE IN THE
BIG SUITE, WE'RE GOING TO GO
OUT AND GO OUT OF YOUR WAY TO
BY SLACK BECAUSE YOU THINK
IT'S BETTER.
>> AND CORRECT ME IF I'M WRONG
BUT I DON'T BELIEVE THAT THEY
ACTUALLY RELEASED UPDATED
FIGURES FOR THOSE ACTIVE USERS
THAT RIGHT WHERE AS MICROSOFT
HAS
DONE THAT.
>> AND IS IT SO SLACK DID NOT
RELEASE THE ENOUGH MICROSOFT
HAS BEEN RELEASED NUMBERS EVERY
MONTH AND I THINK WE'RE
PROJECTING A CERTAIN NUMBER FOR
WHERE THEY WILL BE A NEXT
MONTH.
>> ANOTHER BIG AREA OF CONCERN
IS THE SLOWING GROWTH AND THEY
HAD A REACHED OVER 50 I THINK A
PURSE THAT IN TERMS OF THE
REVENUE
IN THERE. NOW FORECAST NOT A
BIGGER LOSS AND THE NEXT 3
MONTHS, BUT ALSO A SLOWDOWN IN
THE REVENUE GROWTH TO UNDER 50%
TO AROUND THE MID 40% RANGE,
WHICH I THINK INVESTORS ALSO
CONCERNED ABOUT RAY WHAT ABOUT
YOU ARE YOU CONCERNED ABOUT
THAT WHY ARE INVESTORS
CONCERNED.
>> INVESTORS ARE CONCERNED
BECAUSE WHEN THEY HAD PRICE THE
STOCK ORIGINALLY THERE ARE
GOING ABOVE THE RULE OF 40
RIGHT AND THERE WAS AN
ASSUMPTION THAT THIS WAS GOING
TO STOP US GOING TO CONTINUE TO
GO UP 5060% AND THAT WOULD COME
DOWN TO YOU KNOW
SOMETHING THAT'S MORE
REASONABLE IN THE AREA OF LIKE
HIGH GROWTH HIGH TECH IDEAS
POST
IPO STOPPED. THE CHALLENGES
BACK TO THE POINT CAN MAKE GROW
FASTER TO MAY GROW MORE THAN
THAT WE'RE JUST KIND OF WHY WE
HAVE A PRICE TARGET 35 BECAUSE
THE
QUESTION IS WE'RE NOT SURE
WE'RE NOT SURE IF THEY CAN KICK
IT IN HOWEVER THE DID SHOW SOME
GOOD NUMBERS RIGHT
TO DIE OF THOSE A 100,000 I
BELIEVE PAYING CUSTOMERS RIGHT
THAT ARE PAYING MORE THAN
ACTUALLY SUMMER 20 BUSINESSES
ARE PAYING MORE THAN A
FOR YEAR AND SIX-FIGURE DEALS
AND THAT SHOWS THAT THEY'RE
GETTING ENTERPRISE GROWTH
THEY'VE BUILT AN ENTERPRISE
SALES TEAM HAS DONE A REALLY
GOOD JOB WITH CUSTOMER SUCCESS
MERIT.
>> WE'RE A FEW MONTHS AWAY FROM
THAT DIRECT LISTING RIGHT HERE
ON THE FLOOR OF THE NEW YORK
STOCK EXCHANGE
IN HINDSIGHT HOW WOULD YOU SAY
NOT ONLY THE DIRECT LISTING
WENT BUT HOW THE COMPANY'S BEEN
RECEIVED ESPECIALLY COMPARED TO
OTHER IDEAS THAT WE'VE SEEN
THIS YEAR. THEY'RE CERTAINLY
BEEN SOME THAT DONE WELL BEYOND
MEAT FOR EXAMPLE, BUT THE
TECH COMPANIES THAT WE'RE
GETTING A LOT OF ATTENTION
RIGHT NOW LIKE LYFT AND NOT
DOING SO.
>> IT'S TRUE. THE CONSUMER TECH
COMPANIES HAVEN'T DONE AS WELL
AS THE ENTERPRISE ONE SLACK WAS
THE ENTERPRISE COMPANY THAT WAS
SUPPOSED TO DO A
LITTLE BIT OTHER THAN THAT AND
HE'S ALREADY SEEN TODAY.
I THINK IT SHOULD HAVE CUT THE
WE WERE POLITICIAN IN HALF TO
ABOUT 20 BILLION A SET OF
40 BILLION. SO WE'RE STARTING
TO SEE SOME OF THESE YOU KNOW A
LITTLE BIT OF A FRAUD IS COMING
BACK DOWN AND I THINK IT'S A
GOOD THING FOR THE MARKET.
>> OK. WELL THAT'S I MEAN I
THINK OF. IT'S BACK TO REALITY
OF.
COMING UP IPO UPCOMING IPO I
SHOULD SAY ARE YOU A NEW LOOK
DOWN THE LINE ARE YOU LOOKING
AT ANY OTHER IDEAS ARE IMPACTED
BY THE WOMAN TO THE ONE THAT
WE'VE SEEN THE PUBLIC THIS
YEAR.
>> WELL THIS WILL
IMPACT TALENT HERE THIS WILL TO
US A COUPLE MORE THAT I SHOULD
BE ANNOUNCED IN A FEW NEXT
WEEKS BECAUSE PEOPLE ARE TRYING
TO
FIGURE OUT WERE WE IN THE
ECONOMIC CYCLE WHERE WE IN THE
CHINA TRADE SITUATION.
BUT ONE POINT IS THE 2020
ELECTION THAT PEOPLE TRYING TO
BEAT OUT BEFORE THEY GO OUT.
>> I'M I'M WONDERING WHAT YOU
ARE THINKING ABOUT THE
REMAINDER OF THE YEAR. I MEAN
HOW YOU ARE PRICING. THOSE ARE
THE SORTS
EXTERNAL FACTORS INTO TO THE
PRICE TARGETS THAT YOU'RE
GIVING THE COMPANIES THEY ARE
FALLING. I MEAN ARE YOU
OPTIMISTIC ABOUT A RESOLUTION
BETWEEN THE US AND CHINA IN
TERMS OF TRADE.
>> SO THIS IS GOING TO BE
INTERESTING TO SO IF THEY DO
PULL OFF A
TRADE DEAL,
SOMETIME TOWARDS THE END ALMOST
LIKE IN NOVEMBER BASICALLY
ENDED DECEMBER, MAYBE IT'S A
CHRISTMAS GIFT. THEN YES, I
THINK WE'LL BE OK.
IF WE DON'T HAVE A TRADE DEAL.
I DON'T THINK ANY TO HAPPEN
AFTER THE ELECTION.
>> BACCHUS LIVE REALLY QUICKLY
ONE THING I WOULD LIKE TO TALK
ABOUT WHEN IT COMES BACK IS
THERE
DOWN TO OR HAS OF COURSE THEY
WANT TO MEASURE THEIR OF TIME
BUT
ACTUALLY SLIPPED WELL 99.9% FOR
2 MONTHS IN A ROW CONSECUTIVELY
JUNE AND JULY THEY DO HAVE TO
BACK CUSTOMERS WHEN
THAT HAVE THE INS AND THEY SET
ASIDE SOME OF 0.2 MILLION IN
CREDITS THAT WAS THE IMPACT
THEIR TOP LINE, I'M NOT ABOUT
A LOT BECAUSE IF YOU ARE A
COMPANY THAT RELIES SOLELY ON
SLACK. IF YOU PAY THEM TO KEEP
YOUR
OPERATIONS GOING. AND IT GOES
DOWN AND YOU CAN DO BUSINESS.
I
MEAN I WELL PLAYED OUR
CUSTOMERS NOT ONLY GOING TO BE
ASKING FOR MORE MONEY BUT
ASKING FOR MORE INVESTMENT ON
THE BACK AND SO THAT THESE THE
DOWN TIMES HAPPEN LESS
FREQUENTLY.
>> THAT'S A GREAT
QUESTION HOPE WHEN WE'RE
THINKING ABOUT THE CLOUD A 99.9
IS OKAY PEOPLE WITH HER 19 I
WAS
5 NINES AND THAT DOES COST
YOU MONEY, HOWEVER, IN THE BIG
PICTURE, IT'S STILL BETTER THAN
THAT SUM WAS TRYING TO RUN THAT
ON THEIR BUT IN THE ALERT,
THE SCALE THEY ARE INVESTING,
WE'RE SEEING LOTS OF HIRING FOR
INFRASTRUCTURE ENGINEERS FOLKS
THAT ARE ACTUALLY GOING TO
SLIDE BACK AND BUILD AND SCALE
UP ON THE
ENTERPRISE SIDE AND IT'S TOUGH
WHEN AREA WHERE WE'RE SEEING A
LOT OF OUR
INDIANA LAW A JOB PLACEMENT
CENTER BEEN GOING IN TO SLIDE
OVER THE LAST 3 MONTHS.
>> THAT'S RIGHT. IT'S LIKE A
FOR THOSE
WHO ARE NOT FAMILIAR THEY THEY
ACTUALLY HAVE A CALENDAR WHERE