Deltec Think About This - Killing Me Microsoftly September 16, 2020 | Page 4

Think About This INVESTMENT RESEARCH Slack user base being devoured by Microsoft Teams Microsoft Teams and Slack are both communication and collaboration platforms featuring workplace chat, video conferencing, file storage, and application integration. Microsoft is leveraging its dominant position in business software to fast track the adoption of Teams. By bundling Teams into Office 365 for free, Microsoft is targeting 258 million monthly active users, 25% of whom now use Teams. They are giving this product away to defend the Office’s entrenched position and recurring revenue. Slack has a stand alone product that requires an additional paid subscription. The competition is extraordinarily one sided. Slack launched in 2013 and Teams launched in 2017. The last time Slack published DAUs (daily active users) was in October 2019. They reported 12m DAUs compared to Microsoft Team’s 20m in November of the same year. Teams had almost double Slack’s DAUs in half the time from launch. As COVID-19 kept workers at home, Teams has dramatically increased its user base. In April 2020 the DAUs hit 75m. Although Slack has not been reporting DAUs we can assess growth through other metrics. Even with Covid, we see a deceleration in the user base. SLACK CUSTOMERS > $100K GROWTH QoQ 20% 15% 10% 5% 2.3% 0 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Source: Company Filings, Deltec www.deltecbank.com Deltec Bank & Trust Limited