OK, perhaps that's underselling Uber, which is in line to conduct one of the biggest VC-backed IPOs ever. But late last week, we learned the listing might not be as big as its investors once dreamed. And within hours of that news, Slack dropped a major filing of its own, revealing a first look at some of its key financial figures.
Slack and Uber taking their latest steps toward ringing the opening bell on Wall Street is one of 11 things you need to know from the past week:
1. Let's go public now, everybody's learning howUber updated its S-1 filing on Friday to reveal a price range of $44 to $50 per share. The company plans to sell a whopping 180 million shares, so a midpoint pricing would raise some $8.46 billion and reportedly result in a valuation somewhere in the range of $80 billion to $90 billion. That's a) A far cry from the $120 billion figure that had been floated as recently as December, and b) Potentially not that much higher than the $76 billion valuation Uber reportedly achieved with its latest round of private funding.
It's probably also bad news for the bank account of CEO Dara Khosrowshahi, who's reportedly due a nine-figure payout if Uber maintains a $120 billion public valuation for 90 straight days.
The latest filing also included some other Uber updates. One is that the business is now estimating an adjusted EBITDA loss of $847 million to $954 million for 1Q 2019, after reporting a $1.8 billion loss for all of 2018. Another new tidbit is that five different backers will offload more than 1 million shares in the listing, including SoftBank, which would bring in more than $250 million at a midpoint price.
Slack's S-1 filing also revealed some notable facts about the company's backing: Mainly, that four VC investors combine to own a majority of Slack's shares. Accel controls a 24% stake, while Andreessen Horowitz owns 13.3% of the company, Social Capital has a 10.2% holding, and SoftBank maintains a 7.3% interest. Recent reports have indicated that Slack's shares have traded at a $17 billion valuation on the secondary market in pre-IPO dealing; that, of course, would value Accel's stake at more than $4 billion.
What else did we learn? Slack's revenue figures reveal the sort of explosive growth you'd expect, sitting at $400.6 million for the 12 months that ended January 31, compared to $220.5 million in 2018 and $105.2 million in 2017. But the messaging company is also spending cash at a rapid rate, which means it's still losing money: $138.9 million for its fiscal 2019, about the same as last year's $140 million loss, and $146.9 million in 2017.
Slack's business model relies largely on finding new companies and customers that will shell out cash to use its product, so it's a good sign for potential investors that Slack is also reporting strong growth in paying customers. The company had 88,000 paid customers in fiscal year 2019 and 575 that handed over more than $100,000, increases from 37,000 total customers and 135 big spenders in 2017.
This section has been updated to more accurately describe Uber's estimated 1Q loss.