Alphalite’s questioning the value of the RPO seems central to the valuation question regarding Snowflake.
My notes from the call:
Half the RPO gained from new customers will be recognized in the second half of the year, because there is six months to migration eg the 19 Fortune 500 added this quarter added no revenue this quarter; but will have used half of what they purchased in the second half of the year. With second year renewals, this is where customers ‘typically going to multi-year contracts’ after recognizing the value proposition.
With the ‘decades’ of data Enterprises have to process, this appears to me like a perpetually larger RPO backlog. That makes The current quarter rev growth a lagging indicator, right.
Also from the call:
resultant outcomes are driving snowflakes evolving Go to Market Strategy and Snowflake is learning what Use-Cases are meaningful in this new Go to market strategy.
Did I hear Snowflake may also be using the knowledge of best use cases as a reason for themselves developing and selling products on Snowflake Marketplace? I haven’t read the transcript yet…
CEO level conversations are at an ‘inflection point’,Blackrock triggered a whole rash of conversations in the Finance vertical and elsewhere.
Long term mid 70’s GM ‘aren’t going to happen this year’.
When all the Aladdin customers to get their data efficiently they’re going to want to be Snowflake customers, sounds like more than a Weak Network Effect right.
My favorite quote from the Confernce Call:
“Data Sharing on Snowflake will lead to innovation transformation.”
(Data Sharing is a product on Snowflake. One which they likely won’t breakout separately, per this CC.)
I believe from these notes alone the story of Snowflakes value proposition is mind-blowing.
Do the numbers support this…
I believe so. I sold 20% of my 9% position to add to OKTA before earnings. 