Slack posts $141 million annual loss when it files to go public

(Reuters) – Sagging Technologies, operator of the popular workplace instant-messaging app, reported an annual loss of € 140.7 million, the company said on Friday, ahead of the planned public market debut.

FILE PHOTO: the side of The app logo is seen on a smartphone in this photo image September 15, 2017. REUTERS/dado Ruvic/Illustration

Slack’s daily active users, more than 10 million euros in the three months ending Jan. 31, 2019, with the paid users at about 88,000, the company’s regulatory filing, showed.

The San Francisco-based company is looking to the general public through a direct listing, making it the second big technology company after Spotify Technology SA to bypass the traditional route of the listing of its shares through an ipo.

A direct list is a cheaper way to use a public company as the process requires less investment banks and thus lower costs.

In a direct quotation, but a company does not sell new shares to raise money. Instead, it gives the existing shareholders the opportunity to cash out.

The company is hoping for a valuation of more than $10 billion in the list, Reuters had previously reported. Some early investors and employees sell the stock at around $28, valuing the company at close to $17 billion, Kelly Rodriques, CEO of the Forge, a brokerage firm, told CNBC on Thursday.

The company expects that trading on the New York Stock Exchange under the symbol “SK”,

Slack sales jumped 82 percent to $400.6 million in its last fiscal year, and its loss narrowed to $140.7 million from $181 million a year earlier.

The company, whose competitors of Microsoft Teams, a free chat add-on for Microsoft Office365 users, said it expects to lose in the near future may not achieve or maintain profitability in the future.

Slack is the latest in a series of high-profile technology companies looking to go public this year. Lyft Inc., Pinterest and Zoom Video Communications have completed Ipos so far in 2019.

Reporting By Aparajita Saxena and Joshua Franklin in New York; Editing by Leslie Adler and Anil D’silva

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