Slack stock falls after Microsoft boasts 20 million Teams users

Cal Jeffrey

TS Evangelist
Staff member

On Tuesday, Microsoft reported that its Teams collaboration app has more than 20 million active daily users. It says that number is up by 54 percent and puts it way ahead of Slack’s last recorded user number of 12 million in October.

Following the news, shares in Slack Technologies dropped more than 10 percent by midday. The work-collaboration company’s stock is down overall about 19 percent since the company went public in June and has fallen by more than 50 points since a day-one peak of $38.62 per share.

Microsoft launched Teams in November 2016. Despite Slack having a two-year head-start, Microsoft surpassed the startup’s numbers in July this year, announcing over 13 million active users, up 3 percent over the 10 million its competitor reported in January.

The surge in the use of Teams is attributed in part to big-name companies adopting the software for workplace collaboration. Alcoa, L’Oreal, and Telefonica are just a few of the large corporations that have started using its app.

CNBC notes, Microsoft CEO Satya Nadella and Vice President Jared Spataro said that not only has Teams been able to lure some Slack users away, it has also found its way into more than 350 enterprises with at least 10,000 employees using the software.

In October, Slack downplayed the rise of Teams saying that Microsoft was essentially padding the numbers by including those who only use the app for voice calls.

Spataro confirmed that anyone using the software for “chat, placing a call, sharing a file, editing a document, or participating in a meeting,” counts as a user in its numbers. He added that just having the app open is not considered usage.

Another factor contributing to the increase in user base is the fact that Teams is included in Microsoft’s Office 365 subscriptions. Along with Azure, the Dynamics 365 enterprise software, and LinkedIn products, Office 365 contributes nearly one-third of Microsoft’s total revenue. This metric alone brought in $11.5 billion just in Q3 2019.

Meanwhile, market analysts are advising clients to sell their Slack shares.

“Our checks in the field indicate Slack will have significant difficulty further penetrating the enterprise given the significant competitive offering from Microsoft’s [Teams] product that could slow growth going forward quicker than the Street is anticipating,” said Daniel Ives and Strecker Backe, analysts for Wedbush. The market prognosticators officially gave Slack a “sell rating” on November 7 as a warning to its investors.

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Plutoisaplanet

TS Addict
Our organization recently switched to Office 365. About a month after I reinstalled office to the 365 version, Microsoft Teams automatically installed itself on my PC and started running at startup. It's not our organization's IM solution (we don't have any designated IM solution), though a few users who like it do use it. I'm probably considered a monthly active user and that's primarily because while Microsoft Teams has an option to start minimized, it doesn't have an option to start hidden in the system tray. Eventually I clear out running programs from my taskbar and open Microsoft Teams to close it.

I'm highly skeptical of what Microsoft considers to be a DAU and I'm sure that users are much more involved/engaged in using Slack than Teams' users are.
 
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mercury80

TS Rookie
There has been a big push for Teams in the company I work for (international telecom). So now we officially use Teams... but all the departments and companies I cooperate with use Slack, Trello, WebEx, etc...
 

mctommy

TS Guru
Our org went from skype to Teams and zoom. So we use Teams, Zoom, and a "landline". Zoom is integrated into all of our AV including all of our collab rooms and meeting rooms. My company has 5k employees across the globe.
 
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Burty117

TechSpot Chancellor
Our organization recently switched to Office 365. About a month after I reinstalled office to the 365 version, Microsoft Teams automatically installed itself on my PC and started running at startup. It's not our organization's IM solution (we don't have any designated IM solution), though a few users who like it do use it. I'm probably considered a monthly active user and that's primarily because while Microsoft Teams has an option to start minimized, it doesn't have an option to start hidden in the system tray. Eventually I clear out running programs from my taskbar and open Microsoft Teams to close it.

I'm highly skeptical of what Microsoft considers to be a DAU and I'm sure that users are much more involved/engaged in using Slack than Teams' users are.
It's literally in the article, they don't consider the App just being opened as an active user, only people who actually use it to IM or open files etc...
 

onestepforward

TS Booster
Now ask them how many of those 20 million users like Teams? I know a lot of people who use it (it's basically free) but I don't know anyone who doesn't hate it.
I'll join that club. I use Slack and Teams daily. Slack does one thing and it does it well. Teams does nothing well and it is a frustration to use. Teams is simply typical MS software - rubbish!
 
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Darth Shiv

TS Evangelist
Now ask them how many of those 20 million users like Teams? I know a lot of people who use it (it's basically free) but I don't know anyone who doesn't hate it.
Bug that annoys me atm is I have to kill the task via Task Manager because when I select Quit it crashes and re-opens itself. Seems like something to do with our AD login config.
 

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