Hey Stocknovice,
As always a great write-up. Thanks for taking the time; I always enjoy reading your views.
I have just one point where I believe we have a different take on things and I would like to explain my thinking.
I thought SNOW had a terrific quarter of customer additions.
If one looks at $1m+ customer growth I think one misses the point. The way they define those is to base the count on trialing 12 month revenue. So there is no surprise for me that those again weren’t that strong. That metric tells the tale of the last 12 months and we all know that has not been a great story: customers rationalizing spend, scrutinizing budgets etc. All old news captured in a 12 month backward looking metric. So I don’t really think that tells us anything ito in-quarter sales success/execution.
They also don’t publish arr. So what we have is total customers. And that, on the face of it didn’t change that much either: up 21% yoy vs 22% the quarter prior.
But looking at net new customers added I see a marked change:
| Cust added | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2020 | 387 | 458 | ||
| 2021 | 328 | 397 | 437 | 585 |
| 2022 | 393 | 458 | 426 | 528 |
| 2023 | 378 | 486 | 484 | 536 |
| 2024 | 339 | 370 | 370 | 530 |
They added 530 customers this last q. Just eyeballing those numbers above shows me that there’s been a step up.
The net customer adds number is up 43% qoq vs 0% in the prior q and 9% the q before. Last year the qoq change from q3->4 was 11% and the years before that 24%, 34% and 18%. So this last q4 was the biggest step up in the velocity of customer wins of the last 5 years.
Which is one of the reasons I have a position in SNOW at this time.
-wsm