categories

HOT TOPICS

NEWSLETTER

If you are considering becoming a 1M/1M premium member and would like to join our mailing list to receive ongoing information, please sign up here.

Subscribe to our Feed

Cloud Stocks: Snowflake Focuses on Developer Community for Growth

Posted on Wednesday, Feb 10th 2021

According to a recent report, the global data warehouse as a service market is predicted to grow from $1.4 billion in 2019 to $23.8 billion by 2030 ata CAGR of 29% driven by increased digitization that is resulting in the creation of structured, semi-structured, and unstructured data in huge amounts. Businesses realize the importance of leveraging this data to derive useful insights to make better decisions and are investing heavily in storing, managing, and analyzing big data. San Mateo-based Snowflake is a leading data warehouse solution provider that went public in September last year.

Snowflake’s Financials

Snowflake was founded in 2012 by Benoit Dageville, Thierry Cruanes, and Marcin Zukowski. It provides “data warehouse-as-a-service” (DWaaS) to enable enterprise users to store and analyze data. It’s patented new architecture is the centerpiece for data pipelines, data warehousing, data lakes, and data application development, and is used for building data exchanges to easily and securely share governed data. Snowflake is also a powerful query processing back-end platform for developers creating modern data-driven applications.

The Snowflake Cloud Data Platform provides a SaaS-delivered DWaaS built for the cloud. By providing capabilities such as data sharing, data lake, data replication, and custom development capabilities, it also serves as a data PaaS. It delivers PaaS-like functionality and the built-in data warehouse design flexibility developers need to power applications for BI, AI, machine learning, IoT, and more.

It also offers a Snowflake Data Marketplace that gives data scientists, business intelligence, and analytics professionals access to over 375 live and ready-to-query data sets from more than 125 third-party data providers and data service providers. The marketplace helps reduce the costs and effort associated with the traditional processes of data ingestion and transformation. It data services insurance, retail, life sciences, media & entertainment industries and the public sector.

For the recently reported third quarter, Snowflake’s revenues grew 119% to $159.6 million. Product revenues grew 115% to $148.5 million. Remaining performance obligations grew 240% to $927.9 million. Net revenue retention rate was 162%. For the quarter, Snowflake had 65 customers with a trailing twelve-month revenue of more than $1 million.

GAAP net loss of $168.9 million grew significantly compared to GAAP net loss of $88.1 million a year ago. Non-GAAP net loss per share was $1.01, compared to non-GAAP net loss per share of $1.92 a year ago.

For the fourth quarter of fiscal 2021, the company expects product revenues of $162-$167 million and product revenues of $538-$543 million for the year.

Prior to going public, Snowflake had raised $1.4 billion in funding from investors including Salesforce Ventures, Dragoneer Investment Group, Meritech Capital Partners, Madrona Venture Group, Sequoia Capital, Sutter Hill Ventures, Wing Venture Capital, Altimeter Capital, and Capital One Growth Ventures. Its last funding round was held in February 2020 when it raised $479 million at a valuation of $12.4 billion.

Snowflake’s Product Enhancements

During the recent quarter, Snowflake announced an expanded partnership with Salesforce. Native integrations between Salesforce and Snowflake will allow organizations to easily unify and analyze all data in Snowflake Cloud Data Platform and visualize it with business intelligence tools such as Tableau and Salesforce applications. Organizations will be able to see new insights about their businesses and their customers. As part of the partnership, it released two key products – the Einstein Analytics Output Connector for Snowflake and Einstein Analytics Direct Data for Snowflake.

The Analytics Output Connector is a native integration that enables joint customers to move their Salesforce data into Snowflake seamlessly. It will allow customers to query the two data sources and use existing business intelligence tools such as Einstein Analytics and Tableau. The Analytics Direct Data integration enables Einstein Analytics users to query directly the data a customer has in Snowflake. This includes their Salesforce data and data generated from their business applications, mobile apps, web activity, and IoT devices.

As part of its data governance strategy, Snowflake also announced the introduction of row access policies, tagging, and column masking. This will help customers control access by user type in a highly granular fashion. These capabilities are essential to grow on the Data Cloud and Snowflake expects more platform enhancements going forward.

Snowflake’s Developer Focus

Meanwhile, Snowflake remained focused on its developer services. It recently announced Snow Park, its new developer experience that will enable users to write code in their preferred language to build data transformations and score machine learning models, all processed by Snowflake.

Last summer, Snowflake had announced the launch of Snowflake Partner Network (SPN), an ecosystem of Technology and Services partners for customers to leverage their adoption of Snowflake’s single, integrated platform. The SPN offers different tiers and benefits for Services and Technology partners. Services partners like Deloitte and Interworks can support Snowflake customers from migration to implementation so organizations can take full benefits of Snowflake. Technology partners like Informatica, Talend, and ThoughtSpot empower Snowflake customers with the tools and resources to develop and deliver joint solutions for realizing the full benefits of the cloud data platform’s ease-of-use, performance, reliability, and security.

Snowflake currently has more than 45,000 developers on its platform. These Snowflake users are able to access an ecosystem where they can share knowledge, seek help, exchange ideas, and collaborate with each other. Its multi-cluster, shared data architecture creates additional compute clusters to support a near-unlimited number of concurrent users on shared tables without contention for resources, thus allowing developers to power applications with no limitations on performance, concurrency, or scale. Developers can use ANSI SQL to query structured and semi-structured data and they can ingest JSON, Avro, Parquet, and other data without transformations or having to fix the pipeline every time the schema changes.

Snowflake went public in September last year on the NYSE under the ticker SNOW at $120 a share. The stock soon soared to $308.71. It raised $3.4 billion from its IPO at a valuation of $33.2 billion. Its stock is currently trading at $314.29 with a market capitalization of $88.9 billion.

Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.

This segment is a part in the series : Cloud Stocks


. Smartsheet Acquiring Bootstrapped Startups to Drive Growth
. Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups
. Netflix Price Hike Ruffles Competition
. How Will Carbon Black Differentiate?
. ServiceNow Grows Through Addition of Capital-Efficient Startups
. Zendesk and Freshworks Follow Different Acquisition Strategies
. Tableau Grows Through Small Acquisitions
. Open Platform Strategy Stands Intuit in Good Stead
. Will GoDaddy Follow the PaaS Route?
. Adobe Delivers Via PaaS
. A Look at Oracle’s 2018 M&A Activity
. What Apps Will Drive More Traction for Cloudera?
. Slack's App Focus Will Be Key to Post-IPO Success
. IBM Counts on its Cloud and Platform for the Turnaround
. Atlassian Acquires From its PaaS Marketplace
. What Should SAP Acquire to Triple its Value by 2023?
. Expect ServiceNow to Acquire From App Marketplace
. Should Alarm.com Follow a PaaS Strategy?
. How Upwork Can Leverage the Virtual Company Trend
. Qualys Scouting For Acquisitions
. Should SAP Acquire Zendesk or Freshworks?
. HubSpot Counts on its API Strategy
. SurveyMonkey Eyes Acquisitions for Growth
. Workday Wants to Disrupt Cloud Computing Using Machine Learning
. Einstein and Open-Source Platform Lead the Charge for Salesforce
. DocuSign Prepares to Beat Rival Adobe
. Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion
. Tableau Acquisition Signals Massive Analytics Push for Salesforce
. Oracle Joins Hands with Microsoft to Take on Amazon
. GoDaddy is Making Strategic Acquisitions for the Next Level of Growth
. Alteryx Sees Strong Momentum
. Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance
. Is Slack Overvalued?
. How Will Cloudera Address the Competition?
. Zoom is Not Bothered by Cisco or Microsoft
. Domo Counts on Enterprise Revenue for Growth
. Netflix Plays with Pricing and Games to Attract Subscribers
. CrowdStrike Has a Successful IPO
. Atlassian Crosses the Billion Dollar Revenue Milestone
. ServiceNow Believes Strength Lies in Tie-ups
. Partnerships are the Mantra for BlackLine
. SurveyMonkey Counts on Enterprise Segment for Growth
. HubSpot Soars to a New High
. Intuit Pushes AI to Simplify Tax Filing
. Splunk Sees Strong Cloud Momentum
. Forescout Partners with Big Names
. Smartsheet Tapping into the Government Sector
. Salesforce Continues its Shopping Spree
. Palo Alto Networks Targets the IoT Security Market
. DocuSign Focuses on the Mortgage Sector
. Oracle Brags About Autonomous Database
. Blackbaud Acquires YourCause to Grow Addressable Market
. The Market Expects a Lot More from Adobe
. Anaplan Makes its First Acquisition Post IPO
. Activist Investor Drives Market Interest in Box
. MongoDB's Formula for Success
. Coupa Aims for $1B Revenue
. Dropbox on a Rocky Road
. Medallia Banks on Acquisitions
. IBM Banks on AI
. Time For Skepticism with Netflix
. SAP Riding High on the Cloud
. Amazon's Faster Shipping Hurting its Earnings
. ServiceNow CEO Change Signals Focus on Acquisitions
. Will Google Acquire Fitbit?
. HubSpot Focuses on Its Platform
. BlackLine Partners with Google Cloud
. Rapid7’s Focus on Cloud SIEM Pays Off
. Splunk Bets Big on Data Streaming
. Intuit's QBO Scores Big
. VMware Builds Up With Acquisitions
. Palo Alto Targets $5B Revenue by 2022
. Workday Targeting Procure-to-Pay Cycle
. Will Salesforce Acquire DocuSign?
. Okta Targets Enterprise Customers
. MongoDB Eyeing China With Alibaba Partnership
. Twilio Counts on API Upgrades for Growth
. Adobe Revs up its Experience Platform
. Top 20 for 2020
. Anaplan Sees Expanding Use Cases
. Dropbox Gears Up to Regain Lost Valuation
. Forescout Fails to Deliver
. Enterprise Bet Pays Off for SurveyMonkey
. SAP Bets Big on Experience Management
. Twilio Steps up Investment in 2020 to Preserve Growth Momentum
. Zendesk, Freshworks Focus on Marketplaces and Integrations
. Proofpoint Targets Insider Threats Through Acquisition
. RingCentral's Powerful Partner Strategy Would Augment with PaaS
. Qualys Counts on Google and Microsoft for Growth
. Shopify Soars on Improved Merchant Offerings
. HubSpot Believes in the Importance of PaaS
. BlackLine Remains Focused on SAP Integration
. Recently Public Cloudflare has New Edge
. GoDaddy is on a Shopping Spree
. Intuit Targets Online User Base Through Acquisition
. Should Palo Alto Networks Acquire ZScaler?
. Why Salesforce Buying Vlocity Proves the Growing Importance of PaaS
. Datadog Performing Well Post Recent IPO
. Workday Should Open Up About its PaaS Success
. Anaplan Focuses on API Connectors for its Platform
. Veeva
. Five9 Strengthens its PaaS Focus
. RealPage Brings AI and SaaS to Real Estate
. Splunk Should Open up About its PaaS Metrics
. Okta Benefiting from App Diversity
. Oracle Sees Growth Momentum
. Xero Focuses on a PaaS Strategy
. DocuSign Resilient to COVID-19
. Smartsheet Looking up to Enterprise Customers for Growth
. Paylocity Delivers Solid Results
. Q2 Holdings Expands TAM with Acquisitions
. New Relic Focuses on PaaS
. AppFolio Leverages AI for Product Enhancement
. Will Adobe Open Up About its PaaS Statistics?
. Change Healthcare Pushes APIs
. Dropbox Needs to Share API Metrics
. Upwork Improves Monetization
. MongoDB has Miles to go
. Nutanix Needs to Define a PaaS Strategy
. Cloudera Focuses on Hybrid Cloud
. Atlassian Gears Up for Growth, Unfazed by Covid-19
. Shopify Helps Merchants Pivot to Online Stores
. ServiceNow Steady in Turbulent Seas
. RingCentral Sees Strong Traction
. Twilio Hits 52-Week High Amidst COVID Crisis
. HubSpot Lowers Outlook Amidst Virus Concerns
. Proofpoint Acquiring Even Amidst Crisis
. BlackLine Looks Solid In The Face of Covid-19
. GoDaddy Continues to Acquire
. Qualys Expands Cloud Offerings to Soar to New Highs
. Zendesk Struggling Amidst the Downturn
. Alteryx Bounces Back Despite Low Outlook
. Palo Alto Networks Continues to Acquire
. Workday Extends its PaaS Strategy
. Splunk Rides High on Cloud Initiatives
. Salesforce Partners with Workday to Address the New Normal
. Veeva Scales New Highs
. Is Smartsheet’s Pullback a Buying Opportunity?
. MongoDB Soars Even in the Crisis
. Okta Reiterates Outlook
. Is Anaplan a Prospect for Oracle, SAP?
. Oracle Relies on Autonomous Offerings
. Adobe Shifts its Focus
. Paycom Confident Under Current Conditions
. DocuSign Soars to Record Highs
. Paylocity Acquires Amid Crisis
. Datadog's Integrations and Upgrades Help it Soar
. AppFolio Improves Offerings for Current Conditions
. SurveyMonkey Should Get Into PaaS
. Model N Soars to a Record High
. Appian Focuses on RPA for Growth
. Slack Beefs up its Portfolio
. Coupa Expands into Treasury Services
. CrowdStrike Soars to Record Highs
. Guidewire Expands Cloud Offerings
. Dropbox Should Focus on PaaS
. Talend Expands Data Offering Through Partners
. IBM Expands Cloud Partners
. One Medical Supports COVID-19 Care Digitally
. Microsoft Rides High on Teams and Gaming
. Investors Say Yes to nCino’s IPO
. Nutanix Focuses on Government and Media Verticals
. SAP Rethinks Qualtrics Acquisition
. Tenable Expands Into Industrial Cyber-Security
. ServiceNow Expands Ties with Zoom
. Cloudera Powers its Data Platform with Partnerships
. Atlassian Continues to Acquire from PaaS Ecosystem
. Shopify Soars to an All-Time High
. The PaaS Landscape
. HubSpot Focuses on the Enterprise Segment
. GoDaddy Restructures During COVID
. Akamai's Security Solutions Thriving
. BlackLine Needs a PaaS Strategy
. Twilio - A Successful PaaS Story
. Zendesk Invests in the Future
. Qualys Continues to Acquire Indian Startups
. ZoomInfo Lists Despite COVID-19
. Analysis of Alteryx PaaS Strategy
. Fastly Needs to Diversify from TikTok
. Way to Go, Salesforce
. Intuit Continues to Acquire
. VMware Continues Buying Spree
. Analysis of Five9's PaaS Strategy
. Okta Expands Alliances to Attract Enterprises
. Palo Alto Continues to Acquire
. Analysis of Splunk's PaaS Strategy
. BigCommerce Goes Big with IPO
. Analysis of Workday's PaaS Strategy
. Analysis of Anaplan's PaaS Strategy
. Bill.com Sees Strong Demand
. Analysis of MongoDB's PaaS Strategy
. Analysis of Wix's Platform Strategy
. New Relic Product Upgrades Deliver Growth
. What Should Proofpoint Acquire?
. Smartsheet Should Follow Atlassian’s Example
. Adobe's Relentless Growth Continues
. SurveyMonkey's PaaS Prospects
. DocuSign Acquires Amid COVID
. Paylocity Counts on Video
. The Unstoppable Veeva
. Magic Software Acquires to Expand in Europe
. What Can Cloud Startups Do To Raise Seed Capital in 2021?
. Guardant Seeks to Disrupt Oncology Testing
. Dropbox Adds Security Capabilities
. Domo Growing Steadily
. Nutanix Focuses on the Hybrid Cloud
. IBM Fails to Impress
. Microsoft’s Partnership with Tom Siebel’s C3 AI is Intriguing
. ServiceNow Well-Positioned for Digital Transformation
. Analysis of Shopify’s Long Term Strategy
. HubSpot Rethinks Pricing Model to Support Businesses
. Akamai Investing in 5G Security Solutions
. Twilio Should Provide Developer Marketplace Revenue Metrics
. How can Alteryx Improve its PaaS Strategy?
. Partnerships Ringing in Growth for RingCentral
. Five9 Focuses on AI-based Contact Centers
. Nutanix Builds a Kubernetes PaaS
. Workday and Anaplan Executing Well Amid Pandemic
. BlackLine Expands in Order-to-Cash Market
. Zoom Investing in Security
. Splunk is on a Shopping Spree
. Veeva Sees Customer Momentum
. Palo Alto Networks Has Missed the Window to Buy Zscaler
. Can Okta Keep the Momentum Going?
. Adobe Acquires to Address Growing Market Opportunity
. nCino's AI Products Help it Soar
. Analysis of Pure Storage’s Portworx Acquisition
. Analysis of Coupa's LLamasoft Acquisition
. Analysis of ZoomInfo’s Everstring Acquisition
. Q2 Holdings at a New High
. Data Breach Drives Cloud Security Stocks to Record Highs
. Should Zoom Acquire Smartsheet?
. New Relic Needs to Accelerate PaaS Strategy
. Proofpoint in the Cyber Attack Aftermath
. Talend Focuses on Data Reliability
. Medallia Continues to Acquire
. Lemonade and Root Disrupting the Insurance Industry
. The Key to PagerDuty's API Strategy
. CrowdStrike Gears up to Tackle Security Breach Concerns
. Everbridge Widens Products and Partnerships
. Cornerstone OnDemand Expands Product Line-up
. Alarm.com Expands Products to Address Competition
. Sumo Logic's IPO Going Strong
. Cloudera Grows Through Acquisition
. IBM Trying and Failing to Reignite Growth
. Box Knows it's All About PaaS
. Bill.com Focuses on Mobile and AI
. DocuSign Leverages AI in Product Innovation
. Atlassian Makes over $100M in PaaS in 2020
. PaaS Strategy Makes Unity IPO Soar
. ON24 Goes Public with $42B TAM as Covid Puts Webinars and Virtual Events Front and Center
. Amazon After Jeff Bezos
. ServiceNow Firing on All Cylinders But One
. Snowflake Focuses on Developer Community for Growth
. Is SAP Acquiring Alteryx?
. Qualys Focuses on SaaS App Security
. SurveyMonkey Remains Focused on APIs, ISV PaaS Still Missing
. Domo Needs to Open up About PaaS Metrics
. Like Wix, GoDaddy Needs to Focus on PaaS
. Datadog on an Acquisition Spree
. Twilio Soars, Focuses on Social Initiatives
. HubSpot Expands Content Offering Through Acquisition
. Zendesk Adds Products, While Freshdesk Keeps Acquiring
. Shopify and BigCommerce Building API-based Ecosystems
. RingCentral Acquires and Adds Partners, But PaaS is Still Missing
. Acquisitions and Product Upgrades are the Mantra for Palo Alto Networks
. Salesforce can Transform Slack PaaS, But Acquisition Still Pending
. After Acquisitions, Five9 Focuses on Channel and Network Partnerships
. Workday Drives Enterprise Use Cases Through PaaS, as Anaplan Taps Into Consultants
. C3.ai Should Do ISV Focused PaaS
. Splunk on the Right Track with Cloud and PaaS
. Veeva Sets an Example, Transitions to a Public Benefit Corporation
. BlackLine is Targeting A/R Automation Market
. Okta Targets $25B Customer Identity Market with Acquisition
. Teradata Trying to Reinvent Itself on the Cloud
. Dropbox Acquires, But Competition Remains Stiff
. Smartsheet Focuses on Partners, and not on ISVs
. MongoDB has Huge Room to Grow in $97B Market
. Cloud and Platform Expansion Continues at Nutanix
. Rapid7 Targets $1B ARR by 2025
. DocuSign Exploring Unprecedented Digital Signature Offerings
. Tenable Continues its Acquisition Spree
. SolarWinds Attack Driving Zscaler's Stellar Performance
. Zoom Should Report Developer Ecosystem Metrics
. DigitalOcean Goes Public with a Strong ISV PaaS Strategy
. Dynatrace Competing with Rivals by Simplifying DevOps
. Talend Becomes a Private Firm, Once Again
. Everbridge Focuses on the Government Sector
. Analysis of Fastly’s Signal Sciences Acquisition
. Cloudera Focuses on Machine Learning for Verticals
. Medallia Acquires to Expand Digital Experience Analytics
. PagerDuty Sees Market Expand Beyond ITOps

Hacker News
() Comments

Featured Videos