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Chronicles

The story behind the story

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On Twitter, Slack CEO discussed some of the dramatic changes Slack has seen over the last few weeks, like quickly adding 9K net new customers; stock up 10%+

thread by Slack CEO about the last 2 weeks: tough choices re: corona & staff, earnings call, stock market crash, usage surge. We glorify entrepreneurship, but it's no cakewalk https://twitter.com/... Steven Sinofsky / @stevesi : There is a lot here to take in relative to crisis management and just being a human leader. (Disclosures - https://t.co/...) https://twitter.com/...

CNBC Todd Haselton

Context & Ripple Effects

Stewart Butterfield's Twitter thread lands three days after his Q&A with Stewart Butterfield on COVID-19 laid out how Slack was handling the remote-work surge, competition with Microsoft and Zoom, and a product redesign. The market context matters: when Slack last reported strong fundamentals in September 2019 — $145M revenue, up 58% YoY — the stock still fell double digits, so a 10%+ rally on a CEO thread marks a real reversal in how investors are reading the company.

The 9K net new customers in roughly two weeks is the headline number, but the related coverage frames what comes after: subsequent quarters show the pandemic surge settling into flat revenue growth through the pandemic, making this moment the peak of the crisis-adoption story rather than a permanent step-change.

First-order effects

  • Slack adds 9K net new customers in about two weeks as platform usage surges with the shift to remote work, directly expanding its paid base beyond the 100K+ reported in September 2019.
  • Investors bid Slack's stock up more than 10%, breaking the company's pattern of selling off even on strong earnings reports.

Second-order effects

  • Rivals named in Butterfield's own Q&A — Microsoft and Zoom — face pressure to match Slack's crisis-era onboarding speed, since the sudden influx of remote teams is a one-time land-grab for default collaboration tools.
  • A usage spike this sharp forces Slack to scale infrastructure ahead of revenue recognition, tightening the margin math between customer additions and the cost of serving them.

Third-order effects

  • If the pattern in the later coverage holds — growth flattening even as the customer base keeps growing — the structural lesson is that crisis-driven signups only become durable revenue if conversion and retention outlast the emergency, which is exactly the gap Slack's subsequent quarters expose.
  • Butterfield's framing of 'being a human leader' alongside hard staffing choices points toward crisis communication itself becoming part of how enterprise software companies are valued by both employees and markets.

The trend: Enterprise collaboration tools are discovering that crisis-driven adoption spikes set records quickly but convert into sustained growth only if customers stick after the disruption ends.

Discussion

  • @stewart Stewart Butterfield on x
    My day job (also: night job) is CEO of Slack, a publicly traded company with investors to whom I am a fiduciary, 110k+ paying customers of all sizes, and thousands of employees I care about very, very much. The last few weeks have been 🤯😳😢 Here's what it's been like. [Thread]
  • @reformedbroker Downtown Josh Brown on x
    One of the best threads I've ever read from a business leader. Probably not an accident that @SlackHQ stock is having a big day either $WORK Appreciate you as both a customer and a shareholder @stewart https://twitter.com/...
  • @rkrigney Ryan K. Rigney on x
    Some companies are doing really well right now, and talking about that in an authentic way is a really tough (and dangerous, frankly) thing. But I think the CEO of Slack does a pretty good job of it in this thread. Interesting insight into what it's like behind the scenes there. …
  • @mkobach Matthew Kobach on x
    When people say “be authentic” on social media, this thread is what they mean 👏 @stewart https://twitter.com/...
  • @lyssaslounge Katharina Borchert on x
    This is an unbelievably open and raw thread about how the CEO of Slack is experiencing the tumultuous times we're in. So very worth reading. And thank you for sharing @stewart! #COVID19 #bearmarket https://twitter.com/...
  • @profgalloway Scott Galloway on x
    Nail biter — thread by Slack CEO about the last 2 weeks: tough choices re: corona & staff, earnings call, stock market crash, usage surge. We glorify entrepreneurship, but it's no cakewalk https://twitter.com/...
  • @stevesi Steven Sinofsky on x
    There is a lot here to take in relative to crisis management and just being a human leader. (Disclosures - https://t.co/...) https://twitter.com/...