Personal blog of Yzmir Ramirez

Slack this morning disclosed estimated preliminary financial results for the first quarter of 2019 ahead of a direct listing planned for June 20.

Citing an addition of paid customers, the workplace messaging service posted revenues of about $134 million, up 66% from $81 million in the first quarter of 2018. Losses from operations increased from $26 million in Q1 2018 to roughly $39 million this year.

In addition to filing updated paperwork, the Slack executive team gathered on Monday to make a final pitch to potential shareholders, emphasizing its goal of replacing email within enterprises across the world.

“People deserve to do the best work of their lives,” Slack co-founder and chief executive officer Stewart Butterfield said in a video released alongside a live stream of its investor day event. “This desire of feeling aligned with your team, of removing confusion, of getting clarity; the desire for support in doing the best work of your life, that’s universal, that’s deeply human. It appeals to people with all kinds of roles, in all kinds of industries, at all scales of organization and all cultures.”

“We believe that whoever is able to unlock that potential for people … is going to be the most important software company in the world. We aim to be that company,” he added.”

Slack, valued at more than $7 billion with its last round of venture capital funding, plans to list on the NYSE under the ticker symbol “SK.”

The business filed to go public in April as other well-known tech companies were finalizing their initial public offerings. Following Uber’s disastrous IPO last week, public and private market investors alike will be keeping a close-eye on Slack’s stock market performance, which may determine Wall Street’s future appetite for Silicon Valley’s unicorns.

Though some of the recent tech IPOs performed famously, like Zoom, Uber and Lyft’s performance has served as a cautionary tale for going out in poor market conditions with lofty valuations. Uber began trading last week at below its IPO price of $45 and is today down significantly at just $36 per share. Lyft, for its part, is selling for $47.5 apiece today after pricing at $72 per share in March.

Slack isn’t losing billions per year like Uber, but it’s also not as close to profitability as expected. In the year ending January 31, 2019, Slack posted a net loss of $138.9 million and revenue of $400.6 million. That’s compared to a loss of $140.1 million on revenue of $220.5 million for the year ending January 31, 2018. In its S-1, the company attributed its losses to scaling the business and capitalizing on its market opportunity.

Workplace messaging startup Slack said Monday, February 4, 2019 it had filed a confidential registration for an initial public offering, becoming the latest of a group of richly valued tech enterprises to look to Wall Street. (Photo by Eric BARADAT / AFP) (Photo credit should read ERIC BARADAT/AFP/Getty Images)

Slack currently boasts more than 10 million daily active users across more than 600,000 organizations — 88,000 on the paid plan and 550,000 on the free plan.

Slack has been able to bypass the traditional roadshow process expected of an IPO-ready business, opting for a path to Wall Street popularized by Spotify in 2018. The company plans to complete in mid-June a direct listing, which allows companies to forgo issuing new shares and instead sell directly to the market existing shares held by insiders, employees and investors. The date, however, is subject to change.

Slack, the ubiquitous workplace messaging tool, will make its pitch to prospective shareholders on Monday at an invite-only event in New York City, the company confirmed in a blog post on Wednesday. Slack stock is expected to begin trading on the New York Stock Exchange as soon as next month.

Slack, which is pursuing a direct listing, will live stream Monday’s Investor Day on its website.

An alternative to an initial public offering, direct listings allow businesses to forgo issuing new shares and instead sell directly to the market existing shares held by insiders, employees and investors. Slack, like Spotify, has been able to bypass the traditional roadshow process expected of an IPO-ready business, as well as some of the exorbitant Wall Street fees.

Spotify, if you remember, similarly live streamed an event that is typically for investors eyes only. If Slack’s event is anything like the music streaming giant’s, Slack co-founder and chief executive officer Stewart Butterfield will speak to the company’s greater mission alongside several other executives.

Slack unveiled documents for a public listing two weeks ago. In its SEC filing, the company disclosed a net loss of $138.9 million and revenue of $400.6 million in the fiscal year ending January 31, 2019. That’s compared to a loss of $140.1 million on revenue of $220.5 million for the year before.

Additionally, the company said it reached 10 million daily active users earlier this year across more than 600,000 organizations.

You know how kings used to have trumpeters heralding their arrival wherever they went? Proxy wants to do that with Bluetooth. The startup lets you instantly unlock office doors and reserve meeting rooms using Bluetooth Low Energy signal. You never even have to pull out your phone or open an app. But Proxy is gearing up to build an entire Bluetooth identity layer for the world that could invisibly hover around its users. That could allow devices around the workplace and beyond to instantly recognize your credentials and preferences to sign you into teleconferences, pay for public transit or ask the barista for your usual.

Today, Proxy emerges from stealth after piloting its keyless, badgeless office entry tech with 50 companies. It’s raised a $13.6 million Series A round led by Kleiner Perkins to turn your phone into your skeleton key. “The door is a forcing function to solve all the hard problems — everything from safety to reliability to the experience to privacy,” says Proxy co-founder and CEO Denis Mars. “If you’re gonna do this, it’s gonna have to work right, and especially if you’re going to do this in the workplace with enterprises where there’s no room to fix it.”

But rather than creepily trying to capitalize on your data, Proxy believes you should own and control it. Each interaction is powered by an encrypted one-time token so you’re not just beaming your unprotected information out into the universe. “I’ve been really worried about how the internet world spills over to the physical world. Cookies are everywhere with no control. What’s the future going to be like? Are we going to be tracked everywhere or is there a better way?” He figured the best path to the destiny he wanted was to build it himself.

Mars and his co-founder Simon Ratner, both Australian, have been best buddies for 10 years. Ratner co-founded a video annotation startup called Omnisio that was acquired by YouTube, while Mars co-founded teleconferencing company Bitplay, which was bought by Jive Software. Ratner ended up joining Jive where the pair began plotting a new startup. “We asked ourselves what we wanted to do with the next 10 or 20 years of our lives. We both had kids and it changed our perspective. What’s meaningful that’s worth working on for a long time?”

They decided to fix a real problem while also addressing their privacy concerns. As he experimented with Internet of Things devices, Mars found every fridge and light bulb wanted you to download an app, set up a profile, enter your password and then hit a button to make something happen. He became convinced this couldn’t scale and we’d need a hands-free way to tell computers who we are. The idea for Proxy emerged. Mars wanted to know, “Can we create this universal signal that anything can pick up?”

Most offices already have infrastructure for badge-based RFID entry. The problem is that employees often forget their badges, waste time fumbling to scan them and don’t get additional value from the system elsewhere.

So rather than re-invent the wheel, Proxy integrates with existing access control systems at offices. It just replaces your cards with an app authorized to constantly emit a Bluetooth Low Energy signal with an encrypted identifier of your identity. The signal is picked up by readers that fit onto the existing fixtures. Employees can then just walk up to a door with their phone within about six feet of the sensor and the door pops open. Meanwhile, their bosses can define who can go where using the same software as before, but the user still owns their credentials.

“Data is valuable, but how does the end user benefit? How do we change all that value being stuck with these big tech companies and instead give it to the user?” Mars asks. “We need to make privacy a thing that’s not exploited.”

Mars believes now’s the time for Proxy because phone battery life is finally getting good enough that people aren’t constantly worried about running out of juice. Proxy’s Bluetooth Low Energy signal doesn’t suck up much, and geofencing can wake up the app in case it shuts down while on a long stint away from the office. Proxy has even considered putting inductive charging into its sensors so you could top up until your phone turns back on and you can unlock the door.

Opening office doors isn’t super exciting, though. What comes next is. Proxy is polishing its features that auto-reserve conference rooms when you walk inside, that sign you into your teleconferencing system when you approach the screen and that personalize workstations when you arrive. It’s also working on better office guest check-in to eliminate the annoying iPad sign-in process in the lobby. Next, Mars is eyeing “Your car, your home, all your devices. All these things are going to ask ‘can I sense you and do something useful for you?’ ”

After demoing at Y Combinator, thousands of companies reached out to Proxy, from hotel chains to corporate conglomerates to theme parks. Proxy charges for its hardware, plus a monthly subscription fee per reader. Employees are eager to ditch their keycards, so Proxy sees 90 percent adoption across all its deployments. Customers only churn if something breaks, and it hasn’t lost a customer in two years, Mars claims.

The status quo of keycards, competitors like Openpath and long-standing incumbents all typically only handle doors, while Proxy wants to build an omni-device identity system. Now Proxy has the cash to challenge them, thanks to the $13.6 million from Kleiner, Y Combinator, Coatue Management and strategic investor WeWork. In fact, Proxy now counts WeWork’s headquarters and Dropbox as clients. “With Proxy, we can give our employees, contractors and visitors a seamless smartphone-enabled access experience they love, while actually bolstering security,” says Christopher Bauer, Dropbox’s physical security systems architect.

The cash will help answer the question of “How do we turn this into a protocol so we don’t have to build the other side for everyone?,” Mars explains. Proxy will build out SDKs that can be integrated into any device, like a smoke detector that could recognize which people are in the vicinity and report that to first responders. Mars thinks hotel rooms that learn your climate, wake-up call and housekeeping preferences would be a no-brainer. Amazon Go-style autonomous retail could also benefit from the tech.

When asked what keeps him up at night, Mars concludes that “the biggest thing that scares me is that this requires us to be the most trustworthy company on the planet. There is no ‘move fast, break things’ here. It’s ‘move fast, do it right, don’t screw it up.’ “

If a picture is worth a thousand words, how many emails can you replace with a video? As offices fragment into remote teams, work becomes more visual and social media makes us more comfortable on camera, it’s time for collaboration to go beyond text. That’s the idea behind Loom, a fast-rising startup that equips enterprises with instant video messaging tools. In a click, you can film yourself or narrate a screenshare to get an idea across in a more vivid, personal way. Instead of scheduling a video call, employees can asynchronously discuss projects or give “stand-up” updates without massive disruptions to their workflow.

In the 2.5 years since launch, Loom has signed up 1.1 million users from 18,000 companies. And that was just as a Chrome extension. Today Loom launches its PC and Mac apps that give it a dedicated presence in your digital work space. Whether you’re communicating across the room or across the globe, “Loom is the next best thing to being there,” co-founder Shahed Khan tells me.

Now Loom is ready to spin up bigger sales and product teams thanks to an $11 million Series A led by Kleiner Perkins . The firm’s partner Ilya Fushman, formally Dropbox’s head of product and corporate development, will join Loom’s board. He’ll shepherd Loom through today’s launch of its $10 per month per user Pro version that offers HD recording, calls-to-action at the end of videos, clip editing, live annotation drawings and analytics to see who actually watched like they’re supposed to.

“We’re ditching the suits and ties and bringing our whole selves to work. We’re emailing and messaging like never before, but though we may be more connected, we’re further apart,” Khan tells me. “We want to make it very easy to bring the humanity back in.”

Loom co-founder Shahed Khan

But back in 2016, Loom was just trying to survive. Khan had worked at Upfront Ventures after a stint as a product designer at website builder Weebly. He and two close friends, Joe Thomas and Vinay Hiremath, started Opentest to let app makers get usability feedback from experts via video. But after six months and going through the NFX accelerator, they were running out of bootstrapped money. That’s when they realized it was the video messaging that could be a business as teams sought to keep in touch with members working from home or remotely.

Together they launched Loom in mid-2016, raising a pre-seed and seed round amounting to $4 million. Part of its secret sauce is that Loom immediately starts uploading bytes of your video while you’re still recording so it’s ready to send the moment you’re finished. That makes sharing your face, voice and screen feel as seamless as firing off a Slack message, but with more emotion and nuance.

“Sales teams use it to close more deals by sending personalized messages to leads. Marketing teams use Loom to walk through internal presentations and social posts. Product teams use Loom to capture bugs, stand ups, etc.,” Khan explains.

Loom has grown to a 16-person team that will expand thanks to the new $11 million Series A from Kleiner, Slack, Cue founder Daniel Gross and actor Jared Leto that brings it to $15 million in funding. They predict the new desktop apps that open Loom to a larger market will see it spread from team to team for both internal collaboration and external discussions from focus groups to customer service.

Loom will have to hope that after becoming popular at a company, managers will pay for the Pro version that shows exactly how long each viewer watched. That could clue them in that they need to be more concise, or that someone is cutting corners on training and cooperation. It’s also a great way to onboard new employees. “Just watch this collection of videos and let us know what you don’t understand.” At $10 per month though, the same cost as Google’s entire GSuite, Loom could be priced too high.

Next Loom will have to figure out a mobile strategy — something that’s surprisingly absent. Khan imagines users being able to record quick clips from their phones to relay updates from travel and client meetings. Loom also plans to build out voice transcription to add automatic subtitles to videos and even divide clips into thematic sections you can fast-forward between. Loom will have to stay ahead of competitors like Vidyard’s GoVideo and Wistia’s Soapbox that have cropped up since its launch. But Khan says Loom looms largest in the space thanks to customers at Uber, Dropbox, Airbnb, Red Bull and 1,100 employees at HubSpot.

“The overall space of collaboration tools is becoming deeper than just email + docs,” says Fushman, citing Slack, Zoom, Dropbox Paper, Coda, Notion, Intercom, Productboard and Figma. To get things done the fastest, businesses are cobbling together B2B software so they can skip building it in-house and focus on their own product.

No piece of enterprise software has to solve everything. But Loom is dependent on apps like Slack, Google Docs, Convo and Asana. Because it lacks a social or identity layer, you’ll need to send the links to your videos through another service. Loom should really build its own video messaging system into its desktop app. But at least Slack is an investor, and Khan says “they’re trying to be the hub of text-based communication,” and the soon-to-be-public unicorn tells him anything it does in video will focus on real-time interaction.

Still, the biggest threat to Loom is apathy. People already feel overwhelmed with Slack and email, and if recording videos comes off as more of a chore than an efficiency, workers will stick to text. And without the skimability of an email, you can imagine a big queue of videos piling up that staffers don’t want to watch. But Khan thinks the ubiquity of Instagram Stories is making it seem natural to jump on camera briefly. And the advantage is that you don’t need a bunch of time-wasting pleasantries to ensure no one misinterprets your message as sarcastic or pissed off.

Khan concludes, “We believe instantly sharable video can foster more authentic communication between people at work, and convey complex scenarios and ideas with empathy.”

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