Slack: The Bulls are typing...

By that, he means that as more software like Figma, GitHub, Jam, and Salesforce allows people to communicate and collaborate directly within the app they’re using to get work done, Slack is a mere backup plan. If a designer and a PM can chat within Figma or a PM and an engineer can collaborate on the website within Jam, Slack becomes the place wher... See more

If Slack can serve as both the connective tissue among companies, and between companies and the products that they use, all within their existing workflows, it will be in a position to compound its advantage for years to come.

While Slack’s product and partner ecosystem can be hard to explain, its business model is straightforward: it is a software-as-a-service (SaaS) business that charges companies a monthly rate for every employee that uses it.

The difficulty describing itself is core to Slack’s challenges to date, and the idea that once companies start using Slack, they can’t live without it is core to its promise.

Slack is already a top quartile SaaS company trading like a bottom quartile SaaS company because of that age-old worry that “Microsoft will just crush it.”

It’s one of the fastest-growing public SaaS companies in the world with eye-popping gross margins. Slack is world-class at acquiring, retaining, and growing with the fastest-growing companies in the world. As they grow, Slack grows, and revenue compounds while costs stay relatively flat. Slack Connect will turbocharge that compounding by allowing n... See more

But I’m not quitting on Slack. Partially because it’s underperformed SaaS so badly during COVID, I think it’s one of the best opportunities in tech. Wall Street hates it because of the threat from Microsoft Teams, but that’s our opportunity. Slack is the rare chance to be contrarian and right by betting on a fast-growing public SaaS company with ex... See more

I could keep going and compare Slack and Teams feature for feature, but no one disagrees that Slack is a better product (unless your company does everything in Office, in which case Teams’ tighter integration with its own products is an advantage).