What is Slack currently worth
Salesforce: The Slack deal is worth gold
Salesforce presented its third quarter figures yesterday. Overall, these were solid. But investors were bothered by the high purchase price for the takeover of Slack. Salesforce shares are currently losing around seven percent.
Overall, Salesforce increased its sales in the third quarter by 19 percent to 5.42 billion dollars (analyst consensus: 5.25 billion). Subscription and support revenues climbed 20 percent to 5.09 billion. Earnings per share were $ 1.15 and the consensus was just $ 0.75.
The outlook from Salesforce is also impressive. Salesforce has raised its forecast for the year and now expects revenues of $ 21.1 billion to $ 21.11 billion (previously: $ 20.7 billion to $ 20.8 billion) and earnings per share of $ 4.62 to $ 4.63 (previously: $ 3.72 to $ 3.74). In both cases, Salesforce far exceeded expectations.
Paid too much for Slack?
In particular, the fact that Salesforce wants to pay more than $ 27.7 billion for the provider of office communication software Slack caused uncertainty among investors. Salesforce pays 31 times the revenue that Slack is expected to generate in 2021. At Zoom, Slack's direct competitor, the 2021 KUV is 46. However, Slack is not growing as fast as Zoom.
In the future, it will therefore depend on whether Salesforce manages to keep Slack's growth at a high level or to accelerate it. From the SHAREHOLDER's point of view, this is entirely possible, because Salesforce has much greater financial leeway to accelerate the growth in the number of users of the Slack software than Slack itself.
Great synergy effects
In addition, Salesforce can fall back on its existing customer base and integrate Slack there in the context of its previous product offering. In return, Salesforce can also win over 130,000 paying Slack users as customers for its CRM software.
The takeover of Slack thus offers Salesforce very large synergy effects and could significantly increase the cloud provider's revenues. Mark Benioff even assumes that with the help of the Slack deal, his company will soon achieve the long-awaited target of 50 billion dollars in sales per year (more than twice as much as Salesforce 2020 should generate).
THE SHAREHOLDER evaluates both the numbers and the Slack deal from Salesforce very positively and recommends investors to use the setback for Salesforce shares to buy. Invested stay with it.
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