Posted on Friday, Jul 16th 2021
According to a recent report, the
global data warehouse as a service market is estimated to grow at a CAGR of 20% from $1.44 billion in 2020 to reach $4.3 billion by 2026. The growth is driven by the organization’s demand to understand the available information regarding business processes, products, customers and leverage this information to expand addressable business opportunities. San Mateo-based Snowflake (NYSE:SNOW) is a leading data warehouse solution provider that recently announced its quarterly results. Snowflake’s Financials
Snowflake’s revenues grew 110% to $228.9 million for the first quarter, ahead of the market’s estimated $211.16 million. Non-GAAP net loss per share was $0.70, compared to non-GAAP net loss per share of $1.72 a year ago. It missed analyst forecast of a loss of $0.16 per share.
Product revenues grew 110% to $213.8 million. Remaining performance obligations grew 206% to $1.4 billion. Snowflake ended the quarter with 104 customers who had a trailing twelve-month revenue of more than $1 million.
For the second quarter of fiscal 2022, the company expects product revenues of $235-$240 million. It forecast product revenues of $1.02-$1.035 billion for the year.
Snowflake’s Product Enhancements
Snowflake recently announced several product enhancements during the quarter. It
announced innovation in data programmability, global data governance, and platform organizations, thus empowering organizations to put more data in the Data Cloud and achieve deeper value from data and business insights. Some of the features added during the quarter include a new Snowflake’s developer experience called Snowpark, which allows data engineers, data scientists, and developers to build using their preferred language and familiar programming concepts, and then execute these workloads directly within Snowflake. It added Java user-defined-functions (UDFs) that will allow customers to bring their custom code and business logic to Snowflake for better performance. Snowflake is also accelerating the time-to-value to unstructured data so that customers can store, govern, process, and share file data alongside their structured and semi-structured data.
It also announced its new partner program,
Powered by Snowflake, which will help accelerate the ability of companies and application developers to produce unique applications. Snowflake will help them through all stages of the application journey in the Data Cloud. It will give partners access to various levels of benefits and opportunities to create and deliver applications and value to customers. It will allow partners to create better applications by leveraging design resources from Snowflake. Customers will also be able to drive awareness and adoption by co-marketing with Snowflake with joint solution content.
has more than 45,000 developers on its platform that can access an ecosystem to share knowledge, seek help, exchange ideas, and collaborate. Developers can use ANSI SQL to query structured and semi-structured data. They can ingest JSON, Avro, Parquet, and other data without transformations or fix the pipeline every time the schema changes. Snowflake competes with a slew of big tech players like Amazon Web Services, Google, Oracle, and SAP along with niche players like Cloudera and TeraData. A 2019 Gartner Magic Quadrant on the sector had identified Snowflake as a leader in the market, ready to play with the big players.
Snowflake went public in September last year 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 $252.54 with a market capitalization of $74.8 billion. It climbed to a 52-week high of $429 in November last year and fell to a 52-week low of $184.71 in May this year.
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? . 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Analysis of Amazon's MGM Acquisition . Guidewire Focuses on Building its Partner Network . Momentive, Formerly SurveyMonkey, Adds Analytics to Offerings . Zendesk Should Look at Acquisitions . HubSpot Continues to Grow its App Marketplace . Is Alteryx Being Acquired? . Shopify Continues to Woo Developers . DigitalOcean Expands Partnership with MongoDB . Analysis of Qualys' TotalCloud Acquisition . Pure Storage Experimenting with Pricing Models . Palo Alto Networks Expands Security Capabilities . RingCentral Cashing in on the Hybrid Work Environment . Splunk Tackles Decelerating Growth with Product Upgrades . MongoDB's Atlas Capabilities Expand to the Government Sector . Analysis of Bill.com's Invoice2Go Acquisition . DocuSign Banks on Agreement Cloud . Smartsheet's Expanding Use Cases . Analysis of Salesforce's Servicetrace Acquisition . Zscaler Focuses on Federal Agencies . Coupa Launches PaaS Strategy . Analysis of BlackLine’s Kyriba Partnership . PagerDuty's Expanding Integration Portfolio . Analysis of Tenable's Accurics Acquisition . Upstart’s Improving AI Algorithm in FinTech Consumer Lending . Analysis of C3.ai's Growing Partnerships . Analysis of Veeva's Learnaboutgmp Acquisition . Analysis of Adobe's Frame.io Acquisition . Snowflake Focuses on the Financial Services Sector . CrowdStrike Expands Government Offerings . Zoom Focuses on Expanding Reseller Offerings . Dropbox Focuses on Content Creators with New Product . Analysis of Okta's atSpoke Acquisition . Sumo Logic Leverages Red Hat Marketplace . Analysis of Dynatrace's SpectX Acquisition . Tuya Prepares to Address the Chip Shortage . Analysis of Appian's Lana Labs Acquisition . Analysis of Qualtrics's $1.125B Clarabridge Acquisition . Fastly Addresses Latency Issues for Developers . Alarm.com Leverages AI for Growth . Analysis of IBM's Rego Acquisition . Analysis of Unity's Parsec Acquisition . UiPath Envisions Advanced ML Capabilities . Microsoft Teams Lags Far Behind Zoom . Analysis of ServiceNow's Gekkobrain Acquisition . Google Attempts to Gain Ground in Cloud and AI . Atlassian Expands Beyond IT Offerings . Amazon Addresses Margin Pressures Through Product Upgrades . Twilio Leverages Segment Platform for Product Expansion . Shopify Expands PaaS Integrations . Analysis of Zendesk's $4.1B Momentive Acquisition . HubSpot Becomes a Stickier Platform . Analysis of Alteryx's Acquisitions . Wix Focuses on Fitness Services Providers . Pure Storage Partners with Microsoft Azure to Address Chip Shortage Concerns . Analysis of Salesforce's LevelJump Acquisition . Qualys Expands Solutions to Address Ransomware . Veeva Eyes Data Cloud . Splunk Expands Partner Capabilities . Coupa Continues to Build on its PaaS . MongoDB Focuses on Winning Government Contracts . DocuSign Targets $50B Market Opportunity in Agreement Cloud . Smartsheet Focuses on PaaS Growth . C3.ai Expands Enterprise and Public Sector Presence