Snowflake IPO

Snowflake just filed for an IPO: https://www.bnnbloomberg.ca/cloud-data-firm-snowflake-confid…

  • Cloud data warehouse, founded in 2012
  • Main competitors are Teradata, Oracle and IBM
  • Not founder led, CEO is Slootman who took ServiceNow public. Also backed by Salesforce
  • 35 billion $ TAM in 2023
  • Last valuation round in February at 12.4b $
  • Over 2.000 customers, added 500 customers in the last quarter alone (article dated Feb 2020)
  • Number 2 on Forbes Cloud 100 in 2019, Datadog was no 5 (list of best private cloud companies)
  • Revenue growth of 174% in 2019
  • Over 100 million $ revenue in 2019, not yet profitable
  • Usage based invoicing, very high NER

I am excited, together with Hashicorp these were the two companies I was hoping for to go public. Need to do additional research though.

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That is good news indeed - I have been waiting for this ever since I read OKTA’s peek under the tent of fastet growing applications. They came out on top in 2019:

https://www.okta.com/businesses-at-work/2020/#fastest-growin…

LNS

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These IPO’s keep coming out of Silicon Valley at higher and higher valuations. I know a few young men that work that graduated university the past couple of years and work for Snowflake. I’m happy for these great guys since they received options at the time of hire. I figured the guys that were hired two years ago are sitting on roughly 8x incrase in their option value at the current $12.4B valuation. I lament the fact that the valutions on SaaS companies are so high that we do not get to partake in the early valuation runup.

Lee

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IPO valuation projected to be between $15-$20 billion

https://www.ft.com/content/4a0b57ea-e5e7-4bd9-9077-91808ef50…

The valuation will be absurd. I think they will get a $20 billion valuation at the first day, so all upside is priced in.

Like Zoom or Crowdstrike the first few months. The best chance to invest was a few month later.

Will have to wait a few months for a correction.

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By all accounts they are competing and winning against AWS, MSFT, SAP, IBM and Terradata. We need to get one our database experts to help us understand the difference between data warehousing and database applications.

I’m trying to figure out if they’re a threat to MDB; looks like AYX is a partner.

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The valuation will be absurd. I think they will get a $20 billion valuation at the first day, so all upside is priced in.

Considering they were last valued at $12.4 billion, they’ll probably be valued at more than that in the offering, and double that for the first trade, easily we’re looking at $30 billion market cap on day 1.
Especially considering ZI (ZoomInfo) went public at $18 billion recently. And Snowflake will be a lot more anticipated than that, I’ve been waiting for them to IPO for over a year. There’s no way this trades at only a little more than what ZI is at.

Also Nikola just went public and valued at $24 billion, despite having no sales. So it’s not just SaaS that’s getting the crazy prices. Sometimes one has to look at unconventional IPOs that just don’t have the hype surrounding them and they do very well.

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Very tough to get “bagger” returns with that type of initial valuation.

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Also Nikola just went public and valued at $24 billion, despite having no sales.

I don’t understand this valuation, they have nothing but a CAD drawing.