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