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The $49B data exchange market will power the next level of growth in $SNOW to network effects beyond data warehouses & data lakes
Price: $234.02
Market Cap: $67B
52 W L – 52 W H: $120 - $429
Shares Outstanding: 285M
Price: $234.02
Market Cap: $67B
52 W L – 52 W H: $120 - $429
Shares Outstanding: 285M
$SNOW targets the $77B big data and analytics management and adjacent $22B data exchange market
$SNOW currently operates in the Cloud data management a market that was $15.7B in 2019, & growing at 11% CAGR to $22B by 2024
There are >490,000 entities with over 200 employees globally and $SNOW is ~ 1% penetrated of market opportunity currently
$SNOW cloud data management platform ingests, stores, and analyzes massive volumes of structured and semi structured data in a highly secure manner
The $SNOW platform is comprised of 6 workloads – warehouse, engineering, data lakes, data science and applications
$SNOW modules drive different use cases with benefits for each module targeting a different audience with customers
$SNOW expanded workloads, Data Cloud sharing & exchange services, with ISVs building businesses on $SNOW, making it a platform
$SNOW most often faces $AMZN AWS/Redshift, $GOOG GCP/Big Query and $MSFT Azure/Synapse.
$TDC Terradata and AWS Redshift are the platforms most often displaced by $SNOW
$TDC Terradata and AWS Redshift are the platforms most often displaced by $SNOW
$SNOW is targeting legacy migrations of $TDC, $IBM/Netezza, $ORCL, $MSFT SQL Server and $CLDR.
$TDC is the most significant opportunity to target for $SNOW
$TDC is the most significant opportunity to target for $SNOW
$SNOW is a disruptive provider with compelling technology, a differentiated business model and strong network effects from marquee customer wins
$SNOW has differentiated technology in cloud data management which helps it secure more wins among customers
$SNOW wins because of key features in the cloud DW market, which make it easier for customers to scale data warehouses without spending more money
$SNOW wins because of key features in the cloud DW market, which make it easier for customers to scale data warehouses without spending more money
$SNOW has 4100 customers, 186 Fortune 500 accounts, up 46% YoY and 77 customers generate more than $1M in revenue per year, up 88% YoY
For some enterprises, $SNOW has already become their second highest line item on IT spend, coming only behind their primary public cloud provider
This has resulted in rapid growth at scale
This has resulted in rapid growth at scale
$SNOW has a unique consumption model. Customers contract for a certain amount of compute and storage capacity. $SNOW records revenue, as capacity is used
More customers are opting for the business critical SKU with $SNOW, which shows the shift to larger, more profitable deals
$SNOW is sold through a direct sales team, which consists of field and inside sales professionals segmented by customer size and region
$SNOW consumption based model and unique technology has resulted in net retention rates at over 168% in Q4 2020
$SNOW dollar-based net revenue retention rate is best in class among SaaS businesses, meaning customers expand their spend with $SNOW consistently
$SNOW commands a significant premium relative to peers in the data management market, thanks to high growth with terrific retention
Total revenue grew by 174% to $265M in FY20. FY21-22 revenue growth of 113% Y/Y and 91% Y/Y, respectively
$SNOW Guidance calls for FCF at breakeven for the full year with product revenues still growing over 80%
All 11 analysts covering $SNOW raised revenue, EPS and adjusted FCF estimates, and continue to believe the likelihood of upside is good
$SNOW was founded in 2012 in San Mateo by Benoit Dageville, CTO Thierry Cruanes, and Marcin Zukowski. Frank Slootman, the CEO was hired in 2019
$SNOW has a strong management team with a background in enterprise software success and growth. The company has consistently attracted strong leadership through its journey
$SNOW risks include competitive threats, lengthy sales cycles and rich valuation leaving no room for earnings miss
Bull and Bear Thesis for $SNOW presents an attractive entry in the low $200s for a 30% gain by year end
