Slack’s CEO May Have Thrown Some Shade at Microsoft

Posted on

According to Slack’s CEO, Microsoft Teams has ‘weak engagement’ and he expects more users to migrate over.

Stewart Butterfield, the head of Slack, a cloud-based proprietary instant messaging platform, said to analysts that the company has over 50 customers paying at least $1 million a year, up from 30 in the same quarter a year earlier.

The CEO said almost 70% of those customers also use Office 365, which includes popular products like Word, Excel, PowerPoint and SharePoint.

According to Butterfield, top customers use parts of Microsoft’s Office 365 suite, but are choosing Slack for messaging anyway, instead of the competing Microsoft Teams app.

“In general we continue to see tremendous adoption across customers of the Office suite,” Butterfield said. “They choose Slack despite having a bundle alternative” that wraps in Teams, he said.

It was on Wednesday that the company reported better than expected financial results. The company reported revenue growth of 60% in the quarter to $168.7 million. This beat analysts’ estimates by more than $10 million.

Disclaimer: We have no position in Slack Technologies Inc. (NYSE: WORK) and have not been compensated for this article.