SaaS Lessons from Slack’s $27.7 Billion Acquisition

April 17, 2021

this deal sent shockwaves across the SaaS industry

Slack started as a gaming company in 2009.

11 years later it got acquired by Salesforce for $27.7 Billion.

Here are some of the biggest takeaways SaaS founders should know from this transaction:

➡️ after achieving $1 billion ARR, Slack’s annual revenue growth is 40%, while its customer base increased by 35%.

➡️Despite growing rapidly fast, Slack’s net retention has declined 10 percentage points over the past year.

➡️49% of Slack’s revenue comes from big customers (customers paying more than $ 100,000).

➡️Its revenue distribution by client size has remained remarkably unchanged.

➡️40% of its revenue comes from outside the U.S. (Slack has clients in over 150 countries).

➡️Slack’s cash generation is top of the line, especially when compared to other SaaS companies.

Is there a takeaway missing?

What do you think of Salesforce's decision