Stockideas

Snowflake Inc
(NYSE:SNOW)
Snowflake Inc

Snowflake Inc. provides cloud-based data platform in the United States and internationally. The company's platform offers Data Cloud, an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of various sizes in a range of industries. The company was formerly known as Snowflake Computing,...
Founded: 2012
IPO date: 2020-09-16
IPO price: $80
Full Time Employees: 5,547
Founder: Benoit Dageville 
Co-Founder: Benoit Dageville / Marcin Żukowski / Thierry Cruanes
CEO: Frank Slootman  (April 2019~)
Sector: Technology
Industry: Software & Tech Services
Next Earnings Date: 2022-11-30
Stock price: $149.04 (+4.3%)
snow stock
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 01, 2022

I'll write something about snow soon. Their ER is truly amazing. $snow


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snow
By: raspberry lazy guy   💬 31   
   on Nov 16, 2022

this is really a good buying opportunity imo. $snow


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interesting earnings next week
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 27, 2021

$crwd. $Snow. $Okta. $Asan. $Docu. $Domo. $Estc. $ZS. Next week is gonna be interesting, lots of innovative high growth companies announcing their earnings next week.

https://i.imgur.com/t74lqCp.jpg


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MongoDB Second Quarter Earnings Call Summary
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 05, 2021

MongoDB is the most popular NoSQL database in the world right now. It has a few alternatives like Cassandra, ElasticSearch, DynamoDB but each of them serve different purposes. Like ElasticSearch is good at search, Cassandra is for tuning the consistency, DynamoDB is good at scaling... etc. But for developers who wants to look for a popular and generic NoSQL solution that is well supported by community, MongoDB might be the go-to solution for you.

And MongoDB Inc is a company that help you host MongoDB and troubleshoot all sort of MongoDB issues. By doing this you can focus on what you do instead of hiring lots of engineers to worry about database backup, sharding, monitoring all those kind of stuff.

As for the earnings call: market is apparently happy about this earnings call, and the stock is up 26% on Friday. In this call you can see their current quarter revenue growth is 44% yoy, but the big story here is that recurring revenue from their SaaS part business, Atlas, which is a managed database solution, grew 83% yoy. And now it represents 56% of their total revenue.

If you take the entire revenue to divide the market-cap you'll get a p/s ratio of around 35 at the close of Thursday. But if you only take the Atlas part of the revenue and you'll get a p/s of 62. But for a company that's growing 90% this price is not unreasonable in year 2021. Snowflake is also a similar company that's growing around 100% a year and they're traded at a p/s ratio of over 100. But bear in mind the rest of the 44% revenue is also growing really fast. And with the rally this company is trading at 44 now.

This is probably why Confluent is also rallying on Friday. Instead of database service they provide managed data streams services. And you can imagine it's like the event bus for companies that need to worry about events. Instead of storing your data in the database you store your data on a stream so that you can subscribe to it and get it in a slightly different way.

Other highlights:

  • Revenue: Total revenue was $198.7 million in the second quarter fiscal 2022, an increase of 44% year-over-year. Subscription revenue was $191.4 million, an increase of 44% year-overyear, and services revenue was $7.4 million, an increase of 27% year-over-year.
  • Gross Profit: Gross profit was $138.0 million in the second quarter fiscal 2022, representing a 69% gross margin, consistent with gross margin in the year-ago period. Non-GAAP gross profit was $142.9 million, representing a 72% non-GAAP gross margin.
  • Loss from Operations: Loss from operations was $72.5 million in the second quarter fiscal 2022, compared to $49.8 million in the year ago period. Non-GAAP loss from operations was $11.5 million, compared to $10.2 million in the year-ago period.
  • Net Loss: Net loss was $77.1 million, or $1.22 per share, based on 63.4 million weightedaverage shares outstanding in the second quarter fiscal 2022. This compares to $64.5 million, or $1.10 per share, based on 58.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $15.2 million or $0.24 per share. This compares to $12.7 million or $0.22 per share in the year-ago period.
  • Cash Flow: As of July 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended July 31, 2021, MongoDB used $19.8 million of cash in operations, $1.7 million of cash in capital expenditures and $1.2 million of cash in principal repayments of finance leases, leading to negative free cash flow of $22.7 million, compared to negative free cash flow of $15.0 million in the year-ago period.

Source: https://webassets.mongodb.com/_com_assets/cms/kt4c1mhctq5hmk6wc-mongodb2ndqfiscal2022finresults.pdf

$CFLT $MDB $SNOW


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Snowflake tops earnings estimates, but issues soft outlook
By: ssmlee04 Community Lead :))   💬 97   
   on Aug 26, 2021

https://seekingalpha.com/news/3734187-snowflake-eps-beats-0_02-beats-on-revenue

the revenue growth is 100% yoy. and the net dollar retention rate is around 160%. you really can't take that for granted. the price is up 4% in after hour trading which I think is reasonable.

$snow


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2020 SaaS review
By: ssmlee04 Community Lead :))   💬 97   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


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What is Snowflake
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 07, 2020

https://www.youtube.com/watch?v=xojAXXRo_S0

https://www.youtube.com/watch?v=xojAXXRo_S0

It's one of the most hyped company in the history of the stock market. But it has helped some companies (like SnapTravel) to gain huge success deriving insights from data. $snow


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Snowflake’s IPO Has Made It Official: Tech Investors No Longer Care About Price
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 21, 2020

https://www.barrons.com/articles/snowflake-jfrog-and-unity-ipos-soared-this-week-its-now-growth-at-any-cost-51600466691

Current market cap of Snowflake is around 60b, which puts them on a p/s ratio of around 120. Also with all those in the money options that people can exercise later on, the forward looking market cap we’re looking at is around 90b, which is around 180 p/s. A lot of times there would be clauses in the IPO saying if you’re price is above x then you can issue y more stocks. This potentially means the market would be flooded with snowflakes stocks later on. It’s would be surprising if the price can hold up at this level for an extended period of time.

This world is crazy. $snow


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Snowflake
By: annainbsinunibss lazy guy   💬 1   
   on Sep 16, 2020

Price went to 300 at a point which is ridiculous. That puts them at a market cap of 85b and p/s ratio of around 200. Is this is not a bubble I do not know what is. $snow


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