Snowflake Q&A Event @ Morgan Stanley Just Now

Investment Analysis Clubs Saul’s Investing Discussions
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Here are my rough notes from the just concluded chat:

  • we reforecast on a daily basis, since we see the consumption daily, one of the benefits of a consumption model.
  • some customers like cheaper storage, which saves them money, but they put more data in and use more compute, which is what we (better margins) and the customer (better insights) prefer.
  • we look at price performance all the time…this recent change impacts some customers, not all…
  • cpu improvements: aws graviton, varies by customer, we saw a range of 5-30% improvements depending on the customers, depends on the size of queries and how much compute is used
  • we see a ~5% revenue hit on a yearly basis due to these improvements
  • we know from customer feedback, during POCs, they need certain performance to move certain workloads to us, so we will always be making these improvements…it absolutely leads to more business
  • has price performance improvements impacted long term snowflake growth trajectory? answer: we called this out previously, and all our previous forecasts have always factored this in. The long term growth story of Snowflake has factored this in and over time it will be negligible since we expect more workloads.

competition:

  • when we compete to do on-prem migration, it is always azure and aws we mostly partner with…gcp is our biggest competitor.

  • defined use case for snowflake and defined use case for databricks…we see many companies using both, like Morgan Stanley

  • Snowflake does better in non-tech companies than databricks due to our relative simplicity.

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This is an audio only, 30 minute Q&A session.
You can listen to it here.

https://morganstanley.webcasts.com/starthere.jsp?ei=1530495&…

It’s a very fast conversation, quite rich, lots of color on disparate topics. It’s hard to capture all the points in text, I encourage investors to listen to this rapid fire Q&A. Mike is a very transparent, sharp, focused talker. I listen to him and I hear confidence without being too boastful or bragging. The man knows his stuff.

Him and Slootman are a power duo to me. Great management team. (Both at ServiceNow of course)

While I am at it, it’s useful to listen to Slootman’s interview at Colossus titled “Narrow the Focus, Increase the Quality”. Notice Slootman also has that similar quality of sharpness, focus.

That podcast is 50 min.
https://www.joincolossus.com/episodes/75184353/slootman-narr…

Baconski.

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Thanks for the link, Baconski.

Analyst,
Lots of Inherent leverage in this company.

Mike Scarpeli, CFO Snowflake at the very end of the Morgan Stanley Conference segment.

Yes!

That really summed it up well, IMO. That exchange in confirmation was following a 30 minute long list of why Snowflake is just getting started. i see why you didn’t include your notes. Most of what was listed was in this and prior CCs. What was talked about here was mostly, like you said, color on the items in the list.

I did particularly like Scarlepi’s descriptions of:
The large bank that was using $34M annually and if he was asked would have said they were maxed out. And Two years on this large bank, They are now using $43M annually on Snowflake. So, we really don’t know what the maximum is yet. And Scarpeli said that ‘none’ of the really large banks are using more than $1M annually at this time. IMO, this specific adds a lot of color.

Overall what I gained most from this was much more color on Snowflakes Application layer. I was happy to hear this, what I really haven’t seen much color on before, Snowflakes Third Act per Scarpeli. This is, as is IMO what ZoomInfo recently announced (all be it no where near the maturity of what Snowflake has).The growth of an Application layer on top of what Snowflake has is being turbo-charged by the acquisition of Streemlit (the open source provider of ‘application templets’ enabling users of python) that when integrated into Snowflake will create apps able to access the Snowflake Data. I assume, each end users of every application will be paying Snowflake for the compute provided when using the App.

Snowflake is now my largest position at 16%,

Jason

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