Read on Twitter
121% GROWTH IPOYou got into $MDB $AYX $AMZN $MSFT because you UNDERSTAND
the value of DATA 
Now, you are on the HUNT
for your next TEN BAGGER 
?Here is a PRIVATE COMPANY that BIG FINANCE is quietly
discussingA SHORT thread
Snowflake $SNOW 
is set to IPO on the 16th of Sept. 
It was founded in 2012 and its HQ is in San Mateo, CA 
Over time, it raised $ 1.4b in capital
from Sequoia Capital ( $NVDA $AAPL $ZM) and Redpoint ( $TWLO $NFLX)
is set to IPO on the 16th of Sept. It was founded in 2012 and its HQ is in San Mateo, CA Over time, it raised $ 1.4b in capital
from Sequoia Capital ( $NVDA $AAPL $ZM) and Redpoint ( $TWLO $NFLX)
$SNOW is a cloud data platform 
Enabling its customers to unite and analyse all their data into one single data platform
But what is a “Cloud Data Platform”?
Enabling its customers to unite and analyse all their data into one single data platform
But what is a “Cloud Data Platform”?
Well, $AMZN launched AWS S3 in 2006 and from this point, the whole world never looked back 
In fact, most businesses started to throw away their expensive and bulky in-house servers
and store their data on the cloud
Data is now stored on servers from $AMZN $MSFT $GOOG
In fact, most businesses started to throw away their expensive and bulky in-house servers
and store their data on the cloud Data is now stored on servers from $AMZN $MSFT $GOOG
EASY right?
If you are a small company, you might not have a lot of data streams to manage
Now, think of the larger ones
They get data from customer transactions 
suppliers 
enterprise applications 
online exchanges and the list GOES ON
If you are a small company, you might not have a lot of data streams to manage
Now, think of the larger ones
They get data from customer transactions suppliers enterprise applications online exchanges and the list GOES ON
And where are not there yet!
As you manage various data streams
you quickly end up with data stored on $AMZN AWS $GOOG GCP $MSFT Azure at the SAME TIME 
Is that efficient? Of course not
That is why you need a cloud data platform
As you manage various data streams
you quickly end up with data stored on $AMZN AWS $GOOG GCP $MSFT Azure at the SAME TIME Is that efficient? Of course not
That is why you need a cloud data platform
$SNOW helps company with ALL of these problems
$SNOW extracts data from different cloud providers and transforms it with their own data engineering tools 
and pipelines 
$SNOW extracts data from different cloud providers and transforms it with their own data engineering tools and pipelines
This data is then made available across the organisation 
, it can be analysed with $SNOW analytical tools and loaded into the organisation’s data applications 
Not convinced yet? Here is @Akamai customer story 
“We had 16 database servers and we couldn’t afford for any of those to fail, Adding two servers here, two servers there—that became a management nightmare. Cost was an issue and so was maintenance.”
“We had 16 database servers and we couldn’t afford for any of those to fail, Adding two servers here, two servers there—that became a management nightmare. Cost was an issue and so was maintenance.”
“The only affordable, zero-maintenance and fully elastic cloud-built data warehouse was Snowflake. Akamai could scale up, down and out
automatically or with a click of a button to execute queries at varying performance levels without paying more.“
automatically or with a click of a button to execute queries at varying performance levels without paying more.“
Let’s dive into the numbers 
121% Revenue Growth at $ 133m for Q2 ’20 - Full Year expected at $ 600m
62% Gross Margin (up from 49% last year)
Current Assets at $ 793m vs Current Liab. of $ 477m
121% Revenue Growth at $ 133m for Q2 ’20 - Full Year expected at $ 600m 62% Gross Margin (up from 49% last year) Current Assets at $ 793m vs Current Liab. of $ 477m
Compared to other #SaaS GMs can be seen as weak 
but are IMPROVING 
Bargaining power is improving with the scale of $SNOW purchases to cloud vendors
Pricing discipline helps $SNOW drive higher margins
According to @BrianFeroldi GMs could get to 70% as sales grow
but are IMPROVING Bargaining power is improving with the scale of $SNOW purchases to cloud vendors Pricing discipline helps $SNOW drive higher margins According to @BrianFeroldi GMs could get to 70% as sales grow
Net loss of $ 171m for the first 6 months of 2020 Should we worry?
Impressive 101% customer growth YoY to 3117
Net revenue retention rate at 158% from 223% last year 
Marketing expenses as a % of revenues decreasing from 132% to 79% YoY
Should we worry? Impressive 101% customer growth YoY to 3117 Net revenue retention rate at 158% from 223% last year Marketing expenses as a % of revenues decreasing from 132% to 79% YoY
$SNOW business model is made to grow with its customers
Customers pay for storage, computing power and data transfers
These customers pay only for what they USE
As its customer grow, $SNOW will GROW ALONG
Customers pay for storage, computing power and data transfers These customers pay only for what they USE As its customer grow, $SNOW will GROW ALONG
But are their customers set to grow? It’s just the beginning of the Data Deluge
Cloud storage market is projected to grow from $50.1b in 2020 to $137b by 2025 (CAGR 22.3% 
)
Cloud analytics market to reach $72.4b by 2026 from $13.15b in 2018 (CAGR 24.3% )
Cloud storage market is projected to grow from $50.1b in 2020 to $137b by 2025 (CAGR 22.3% ) Cloud analytics market to reach $72.4b by 2026 from $13.15b in 2018 (CAGR 24.3% )
Main DRIVERS for Growth
Growing data, volumes and complexity
Machine Learning (ML), Artificial Intelligence (AI) and Internet of Things (IoT)
Remote work (and work-from-home 
)
Decreasing costs of cloud storage solutions
Imminent launch of 5G 
Growing data, volumes and complexity Machine Learning (ML), Artificial Intelligence (AI) and Internet of Things (IoT) Remote work (and work-from-home ) Decreasing costs of cloud storage solutions Imminent launch of 5G
IPO’s coming soon - What valuation can we expect?
$CRWD - Growing at 90% with GMs of 70% - PS of 50
$LVGO - Growing at 124% with GMs of 76% - PS of 49
$SHOP - Growing at 97% with GMs of 53% - PS of 54
- What valuation can we expect? $CRWD - Growing at 90% with GMs of 70% - PS of 50 $LVGO - Growing at 124% with GMs of 76% - PS of 49 $SHOP - Growing at 97% with GMs of 53% - PS of 54
Reported by @TechCrunch @alex $SNOW could IPO between $75 and $85 
$SNOW would be valued between $21b & $24b
With 2020 sales expected at $600m, the PS ratio on the first trading day would lie between 35 and 40
ATTRACTIVE valuation relative to $CRWD $LVGO $SHOP
$SNOW would be valued between $21b & $24b With 2020 sales expected at $600m, the PS ratio on the first trading day would lie between 35 and 40 ATTRACTIVE valuation relative to $CRWD $LVGO $SHOP
The Bottom Line $SNOW’s product is taking the Cloud world by storm and manages to grow revenues by 121% on a basis of $ 133m With a TAM of around $ 150B+ by 2025, the runaway for growth is considerable also considering the potential margin expansion to above 70%
Smart Money is moving into $SNOW as $BRKB and $CRM Ventures are buying each $ 250m of Class A common stock
Our Take We’ll enter $SNOW at the open with an above medium stake (60% of full potential position)
To be reviewed after 6 months as the momentum around the IPO fades and the dust settles
$MELI is on our watchlist To Be Reviewed SOON 
Please note that this is not a recommendation to buy - You are responsible for conducting your own research
Hope you liked this thread!
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Here is a review for $SNOW - would love to hear your take on the matter
@saxena_puru
@PythiaR
@JerryCap
@trevmuchedzi
@investallion
@cameroniadeluca
@CrowdedTradeCap
@JonahLupton
- would love to hear your take on the matter @saxena_puru
@PythiaR
@JerryCap
@trevmuchedzi
@investallion
@cameroniadeluca
@CrowdedTradeCap
@JonahLupton
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Fortune Business Insights
Sources
✑ Investor presentation
✑ Company website
✑ Fortune Business Insights
✑ MarketsandMarkets Analysis
✑ TechCrunch
✑ MotleyFool
✑ TechCrunch
✑ MotleyFool
