His latest payday is set to dwarf both. Most of these peer companies have somewhat comparable top lines but trade at a fraction of Snowflake's sales multiple.
Let's compare that valuation multiple with some other high-flying enterprise tech stocks. The IPO raised $3.4 billion.
Market data powered by FactSet and Web Financial Group. Shares were trading at $258.42 as of 1 p.m. EDT on Wednesday, giving Snowflake a market capitalization of nearly $71 billion.
Snowflake initially priced its stock at $120 per share. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Sales and Marketing as a Percentage of Revenue (MRQ). “I literally have an indefinite horizon,” Slootman said of his plans. After all, Teradata's stock is down 58% from its August 2012 high of around $78 — sporting a market capitalization of $3.8 … At the first day's closing price of nearly $254, Snowflake was boasting an astounding market cap of $70 billion. For perspective, that's over 5.5 …
The company provides data cloud platform which helps customers in data engineering, data lake, data warehousing, data science, data applications, and data sharing. Receive notification when applications open for lists and awards. Chart by author. “But when you sort of go up the ladder and you talk to the people who are sitting on top of those organizations, they understand that their platforms need to have innovation, they need best of breed, they need choice. Snowflake (SNOW) Market Cap is Bigger Than its TAM - Chowdhry. Follow me on Twitter or send me an email at aau-yeung@forbes.com.
For perspective, that's over 5.5 times the $12.4 billion valuation that the company fetched in a Series G funding round in February -- just seven months ago. $75 billion! Slootman, who took over the CEO duties in April 2019, was responding to a question about the company’s growth versus profitability goals, especially given its high spending for sales and marketing activities.
My tech focus would've perplexed my college self, as I studied medieval history and archaeology at Harvard University.
Cloud database company Snowflake opened trading on Wednesday at more than double its list price, making CEO Frank Slootman, ex-CEO Bob Muglia and cofounder Benoit Dageville billionaires. At $70 billion, Snowflake is trading at nearly 174 times trailing-12-month (TTM) sales of $402.7 million. “I'm a huge bull on the opportunity in this country, I just can't help it because I've lived that.”. Snowflake Inc is a software company. If not, the company might have a hard time justifying its valuation to investors. And they are as motivated by that as I am. Fiscal quarters shown. Of course, many more employees and investors are poised to cash in on huge payouts from Snowflake’s rapid appreciation on the New York Stock Exchange should it hold such value, or even close to it, when lockup periods expire later in the fall. Snowflake and Salesforce have an extensive alliance that includes data integration tools and capabilities for moving Salesforce application data into the Snowflake platform for analysis and collaboration tasks.
Finance and author's calculations.
The $70 billion question will be whether Snowflake can maintain those growth rates in the quarters ahead while keeping costs in check. Shares of Snowflake opened at $245 on Wednesday, more than double the California-based company’s list price of $120. He was previously a senior trading specialist at Charles Schwab, and worked briefly at Tesla. “So, it’s sometimes a bit of an ambivalent situation. I edit the Midas List, Midas List Europe, Cloud 100 list and 30, I'm a senior editor at Forbes covering venture capital, cloud and enterprise software out of New York. All Rights Reserved, This is a BETA experience.
Founded in San Mateo, California, in … Snowflake filed its registration statement to go public on August 24 in an S-1 form that put the company’s fiscal 2020 (ended Jan. 31) sales at $264.7 million and revenue in the first six months (ended July 31) of fiscal 2021 at $242.0 million (up 133 percent year over year). That’s according to an MKM analyst via SeekingAlpha. The company, which offers a virtual data lake, or an easily searchable software layer between cloud providers like Amazon, Google and Microsoft and customers’ own programs and apps, generated such buzz by reporting revenue of $264.7 million for the fiscal year ending January 31 and of $242 million for the six months ending July 31, up 174% and 133%, respectively, while posting industry-leading net revenue retention of 158%.
“I crawled on the shore in this country, literally with 100 bucks in my pockets, and I'm not exaggerating when I say when I say that,” Slootman says.
As CEO and chairman, Slootman stood to win big in the IPO, though a majority of his stake in Snowflake includes unvested options, as detailed in its S-1 prospectus. “The only problem today was that nobody wanted to be a seller because the conviction was so high.”.
Still, credit where it's due: Many of Snowflake's growth metrics are undeniably impressive. I'm a Fortune Magazine and WNYC alum. Rohit Kulkarni predicts that Snowflake, because of its cloud-based data warehousing specialty, could blow away Wall Street. As one would expect, growth is strong.
Called out of a retirement spent in elite sailboat racing, Slootman had previously taken two companies public: Data Domain and ServiceNow. I edit the Midas List, Midas List Europe, Cloud 100 list and 30 Under 30 for VC. Snowflake General Information Description.
Snowflake, a provider of cloud-based data storage and analysis software, priced its IPO above its increased range in an offering that values the company at $33.3 billion.
Asked about his billionaire status, Slootman said the title “means very little” as his decision to join Snowflake wasn’t motivated by money. Snowflake announced it … Let's conquer your financial goals together...faster. Anticipation for Snowflake’s first stock trades were heightened last week when Snowflake, in a filing with the U.S. Securities and Exchange Commission, disclosed that it had secured commitments from Berkshire Hathaway and Salesforce to each buy $250 million worth of Snowflake stock in a private placement immediately after its public market debut. Muglia made an estimated $340 million (post-tax) off that sale today, though the shares he sold have already more than doubled in value since. With 49.5 million shares of Snowflake at IPO, Sutter Hill Ventures now sits on a position worth nearly $13 billion at the $258 share price. Data source: Yahoo! Trading now at over $260 per share, Snowflake suddenly commands an almost $75 billion market cap.
Asked about Snowflake’s founders, Slootman called them “very, very humble people” who made his job easier joining later in the company’s story. Bob Muglia, seen here when he was a Microsoft president in 2009, left Snowflake in 2019 but still scored a big payday in its IPO.
Shares in cloud data management company Snowflake began trading on the New York Stock Exchange Wednesday in what financial analysts said was the biggest software company IPO ever and the largest IPO so far of 2020. Cloud-based data warehousing specialist Snowflake made history this week with the largest software IPO ever. The biggest individual winner in Snowflake’s IPO is cofounder Dageville, who remains at the company as its chief technology officer.
In initial trading investors pushed the value of the cloud data platform company’s shares far above the original $120-per-share target and pushing the cloud company’s market capitalization above $70 billion. Snowflake CEO Frank Slootman, second from left, and cofounder Benoit Dageville, left, pose here with cofounder Thierry Cruanes and CFO Mike Scarpelli.
At the first day's closing price of nearly $254, Snowflake was boasting an astounding market cap of $70 billion. Snowflake is also growing faster than most of these comparable companies, save for Zoom, which saw revenue skyrocket by 355% last quarter. Data source: SEC filings. “They’re immensely supportive for what’s going on. Excluding unvested options, Dageville’s 3.5% stake means he owns 8 million shares of the company, a stake worth $2 billion at a share price of $258. Excluding unvested options, Slootman holds around 5.3 million shares of Snowflake, a stake worth $1.4 billion as of 1 p.m. EDT. Snowflake is synonymous with cloud-native data warehousing…there are no equals. Others, including Altimeter Partners, ICONIQ, Redpoint Ventures, Sequoia and Dragoneer stand to profit in the multiple of billions. Dell Technologies Storage Learning Center, Symantec Business Security Learning Center, Dell Technologies World Digital Experience 2020, Snowflake’s IPO: The Details You Need To Know, launched its first channel partner program. As of 2 p.m. You may opt-out by, Covering venture capital, software and startups, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. However, Snowflake has been spending extravagantly to generate that growth, with sales and marketing expenses exceeding revenue for most of the past two years.
Salesforce, Berkshire Hathaway Retain Major Stakes In Snowflake, Ahana Launches Cloud-Native Managed Service For Presto, Alluxio Offers Data Orchestration For Hybrid, Multi-Cloud Systems, Tibco To Acquire Business Analytics Pioneer Information Builders, Data Lake Pioneer Qubole Acquired By Idera. Because if they don’t have that they become less competitive against their competitors,” Slootman said. I'm a senior editor at Forbes covering venture capital, cloud and enterprise software out of New York. “I think the public cloud companies are also sort of finding their footing and their bearing – certainly at lower levels of the organization sometimes the hostilities break out,” Slootman said during the CNBC interview when asked about potential competition from the cloud platform vendors and whether relying on them to provide Snowflake’s services was dangerous. Unique industry intelligence, management strategies and forward-looking insight delivered bi-monthly. Snowflake shares began trading under the ticker symbol “SNOW” at 12:38 p.m. Article Stock Quotes (1) FREE Breaking News Alerts from StreetInsider.com! But as we learned collectively as an industry, sometimes we partner, sometimes we compete,” the CEO said. The CEO insists he doesn’t “keep score” or compare himself to other tech leaders, but enjoys company-building above-all. ET, opening at $245 a share and quickly surging to briefly more than $300 before settling back. Also, the company provides solutions for data silos and data governance. More recently the company has broadened its potential market by defining itself as a cloud data platform company.
With Snowflake’s first-day performance, Slootman now carries a net worth of $1.8 billion, with much more to come should he stick around long enough for his remaining options for millions of more shares to vest.
Securely share tips at https://www.forbes.com/tips/. It's encouraging that Snowflake is starting to pull back on sales and marketing while still being able to post enviable growth and revenue retention metrics. [Related: Snowflake’s IPO: The Details You Need To Know]. Colleen Kapase, Snowflake vice president of worldwide partner and alliances, was hired away from VMware in mid-2019 to oversee the company’s channel initiatives. Data source: Prospectus. Snowflake was already boasting incredibly lofty valuation multiples based on the offering price ($120) alone. Update: “This is a very heavily vetted company,” Slootman told Forbes an interview on Wednesday afternoon.
Muglia now owns a 1.7% stake in Snowflake after entering an agreement with Warren Buffett’s Berkshire Hathaway to sell half of his position at the $120 price per share of the IPO listing. Stock Advisor launched in February of 2002. Teradata appears to be treading water as Snowflake booms. They may not be as hungry as they were before, but they are super motivated because they feel like this is Snowflake version two. IT channel news with the solution provider perspective you know and trust sent to your inbox.
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