Dive Brief:
- Slack plans to raise prices in the first major update to pricing structure since the company launched in 2014, the company said in a blog post Monday.
- Starting Sept. 1, monthly subscribers to its Pro package will pay $8.75 per user, per month. That number is up from $8 per user, per month.
- Annual Pro subscribers will see a smaller hike from $6.67 to $7.25 per user, per month.
Dive Insight:
Collaboration market player Slack, acquired by Salesforce in December 2020, is among a group of tech providers adjusting prices in recent months amid rising U.S. inflation and economic uncertainty.
In March, Google announced price increases to its Cloud offering, effective in October. Microsoft last year also announced a significant price change for its SaaS line.
For Slack, the price hike reflects an evolution in its product. The company rose in profile amid the remote work push of 2020, and has steadily added new capabilities and integrations to compete for enterprise demand.
In a May earnings call, Salesforce chairman and co-CEO Marc Benioff said Slack outperformed revenue expectations, reaching $348 million in Q1 2023, compared to internal guidance of $330 million.
"The number of customers spending more than $100,000 annually grew 45% year over year," Benioff said.
Correction: The headline of this article has been updated to reflect the scope of the price increase is for Pro, not all enterprise, plans.
