Snowflake Strengths, Domain Expertise, and Key Differentiators
Snowflake is moving to a more distributed infrastructure – yet providing a way to consolidate and analyze enterprise data in a consistent and unified way. These changes in enterprise data are fueling interest in DWaaS (data warehouse as a service) offerings, such as Snowflake’s cloud service. By consolidating isolated data sources (data silos) – and viewing them as a data warehouse or data lake, it is possible to harvest more of the enterprise’s data for a more comprehensive analysis of production data. This approach allows customers to derive meaningful insights for business outcomes – and to do this more quickly than with legacy data warehouses
Snowflake Recent Developments
Snowflake is a cloud-based data warehouse service (DWaaS) that supports database access via the SQL query language. This combines traditional SQL language queries with new semi-structured database resources, speeding data analytics and time-to-results. A young company, Snowflake has ambitions to grow from $554 million in annual revenue to $10 billion in a few years.
Snowflake Mergers and Acquisitions (M&A) Activities
Snowflake acquired Cryptonumerics in 2020 for just over $7 million. Snowflake itself has been a takeover target many times.
During the fiscal year ended January 31, 2021, the Company acquired certain assets from a privately-held company for $7.1 million in cash. Snowflake has accounted for this transaction as a business combination. In allocating the aggregate purchase price based on the estimated fair values, the Company recorded $5.7 million as a developed technology intangible asset (to be amortized over an estimated useful life of five years), and $1.4 million as goodwill, which is deductible for income tax purposes. During the fiscal year ended January 31, 2020, Snowflake completed acquisitions of two privately-held companies for an aggregate of $13.3 million in cash and equity. The Company has accounted for these transactions as business combinations. In allocating the aggregate purchase price based on the estimated fair values, Snowflake recorded a total of $5.6 million of developed technology intangible assets (to be amortized over estimated useful lives of five years), $1.1 million of net assets acquired, $0.5 million of a deferred tax liability, $0.1 million of a customer relationships intangible asset, and $7.0 million of goodwill, which is not deductible for income tax purposes. The excess of purchase consideration over the fair value of net tangible and identifiable assets acquired was recorded as goodwill. Snowflake believes the goodwill balances associated with these acquisitions represent the synergies expected from expanded market opportunities when integrating the acquired developed technologies with the Company’s offerings.
Snowflake Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Snowflake applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Snowflake and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Snowflake Platform customers.
Ownership: - NYSE:SNOW
Number of Employees: 3260
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilites,
Snowflake Key Enterprise and Cloud Applications
Snowflake Revenues, $M:
|Type/Year||2019||2020||YoY Growth, %|
|Total Revenues, $M||Subscribe||Subscribe||Subscribe|
|Enterprise Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
|Cloud Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Snowflake Revenue Breakdown By Type, $M:
|Type||License||Prof. Services||Hardware||Support & Maintenance||SaaS||PaaS||IaaS||Other (Non Enterprise Application Revenues)||Total|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||100%|
Snowflake Enterprise Applications Revenues By Functional Markets, $M:
Snowflake Enterprise Applications Revenues By Verticals, $M:
Snowflake Revenues By Region, $M
|Region||% of Total Revenues||2020 Total Revenues, $M||2020 Enterprise Applications Revenues, $M||2020 Cloud Applications Revenues, $M|
Snowflake Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
Snowflake Customers - Breakdown by Geo, Size, Vertical and Product
No. of Snowflake Customers: 4139
No. of Snowflake Enterprise Applications Customers: 4139
No. of Snowflake Cloud Customers: 4139
No. of Snowflake Cloud Subscribers: x
Snowflake platform is used globally by organizations of all sizes across a broad range of industries. As of January 31, 2021, they had 4,139 total customers, increasing from 2,392 customers as of January 31, 2020. As of January 31, 2021, Snowflake customers included 186 of the Fortune 500, based on the 2020 Fortune 500 list, and those customers contributed approximately 27% of their revenue for the fiscal year ended January 31, 2021. As their customers experience the benefits of their platform, they typically expand their usage significantly, as evidenced by their net revenue retention rate, which was 168% as of January 31, 2021. The number of customers that contributed more than $1 million in trailing 12-month product revenue increased from 41 to 77 as of January 31, 2020 and 2021, respectively.
Snowflake’s Data Cloud customers include the following: Allianz; Anthem Health services; DoorDash; JetBlue; Kraft/Heinz; McKesson and Western Union. Many of these customers are looking to consolidate multiple databases into more unified data warehouses for purposes of advanced analytics. Most of the large customers have multi-cloud strategies that fit with their drive for data-consolidation and data egress from legacy data silos that are running on-prem and off-prem.
Snowflake Market Opportunities, M&A and Geo Expansions
In September 2020, Snowflake completed their initial public offering (IPO) in which they issued and sold 32,200,000 shares of their Class A common stock at $120.00 per share, including 4,200,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. They received net proceeds of $3.7 billion after deducting underwriting discounts. On March 1, 2021, all shares of their then-outstanding Class B common stock were automatically converted into the same number of shares of Class A common stock pursuant to the terms of their amended and restated certificate of incorporation.
Leveraging customers’ drive to remove legacy data silos, and to consolidate data for better analytics, Snowflake has ample opportunity for growth. It has been adopted by many large and prominent companies, and has experienced double-digit revenue growth year-over-year.
Snowflake Risks and Challenges
This segment in the market is getting more competitive. Snowflake, which went public via an IPO in 2020, competes with other cloud-based data warehouse solutions, including those from Redis Labs, AWS, Cloudian and Teradata. And, because Snowflake has a multi-cloud strategy for its customers, it is also engaged in co-opetition with the largest cloud companies -- AWS, Microsoft Azure and Google Cloud Platform. These CSPs are its partners for cloud services – and all three have their own DWaaS offers.
Snowflake Ecosystem, Partners, Resellers and SI
Snowflake has a worldwide partner program more than 50 companies worldwide. Within the partner program, categories include cloud partners, services partners, technology partners and data providers.
Snowflake Cloud Infrastructure Insights
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- Snowflake Public Cloud and Infrastructure (IaaS)
- Snowflake Platform (PaaS)
- Snowflake Application Delivery
- Snowflake Private Cloud and Data Centers
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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