Snowflake (SNOW) is about to go public on Wednesday, September 16. The corporate offers a SQL knowledge warehouse and breaks down its knowledge warehousing structure into storage, digital warehouses (compute), and cloud providers.
Providing: 28M shares (plus four.2M put aside for underwriter choices) priced at $75-78/share, placing the worth at about $2.2B on the midpoint. The proposed market cap sits close to $24B on the excessive finish.
Construction: Class A shares have one vote, Class B shares have 10 votes per share. After the providing and personal placements are completed, Class B shareholders will personal roughly 86.three% of excellent shares and maintain 98.four% of the voting energy.
The way it makes cash: Snowflake operates on buyer credit, that are cashed in solely when a buyer is utilizing assets. There are 4 totally different Snowflake Editions (Customary, Enterprise, Enterprise Vital, Digital Personal) and clients can both purchase the service on-demand or via pre-paid capability.
Financials: 2019 income was $264.7M (+173% Y/Y) with a $348.5M internet loss ($178M loss in prior 12 months). H1 income was $242M (+133%) with a $171.3M internet loss ($177.2M loss the prior 12 months).
Key enterprise metrics: Product income, $252.2M in 2019 (+163%) and $227M in 1H20 (+126%); Remaining product obligations, $426.3M in 2019 (+233%) and $688.2 in H1 (+211%); Whole clients, 2,392 in 2019 (+152%) and three,117 in H1 (+101%); Web greenback retention charges, 169% in 2019 and 158% in H1; Prospects with TTM product income above $1M, 41 in 2019 (up from 14 the prior 12 months) and 56 in H1 (up from 22).
TAM: Snowflake estimates an $81B addressable marketplace for its Cloud Information Platform. The corporate cites IDC knowledge exhibiting that the mixed marketplace for Analytics Information Administration and Integration Platforms and Enterprise Intelligence and Analytics Instruments can be valued at $56B at 12 months’s finish and $84B by the top of 2023.
Rivals: Amazon’s AWS, Microsoft Azure, Google Cloud are the foremost business gamers. Snowflake’s cloud knowledge platform additionally operates on these public clouds, totally on AWS.
Key info: Salesforce Ventures and Berkshire Hathaway will every purchase $250M value of shares in a personal placement on the IPO value (about three.125M shares every at midpoint). Berkshire may also buy round 4M shares from a promoting stockholder.
Deeper dive: Snowflake and the Information Blizzard
Sources: Snowflake’s amended S-1 submitting and official pricing information.
Picture supply: Snowflake S-1.
