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Snowflake Is Keeping The Magic Alive

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Snowflake Inc's (NYSE: SNOW) September magic will go down in history as the world's hottest software IPO. When Snowflake announced its public debut, the demand for its shares was far higher than the supply. It seems that it still is. The initial share price expectation was between $75-$85. However, the company went public at $120 a share, and it skyrocketed to an amazing $300 on its first day of trading, breaking the record and becoming the largest company to ever double its value on its opening day. This is how Snowflake's blockbuster debut became the largest software IPO on record.

One of Snowflake's key innovations in keeping the data storage separate from computing, allowing the businesses to get insights from the stored data. Snowflake came out with this service before Microsoft Corporation (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Alphabet Inc (NASDAQ: GOOG) offered their equivalent products, making it easier for Snowflake to grab a part of the data warehousing market.

Snowflake's Earnings Report

Snowflake's revenues jumped 119% to $159.6 million in the fiscal third quarter which ended October 31. Revenue growth in the previous quarter was 121%. There was also an improvement in the segment of losses—in the year-ago quarter, losses were $1.92 per share, whereas this time around, the company showed a loss of $1.01 per share. The company also reported an adjusted loss of $0.62 per share. Although the earnings report pulled down the share price by 16.1%, with the closing price that day at $339.89, we cannot forget that the company went public with a share price of $120.

Microsoft's Answer

The cloud data management service market is expected to be worth around $13 billion next year. Microsoft also decided to take on Snowflake and Amazon by unveiling another product designed to enable companies to analyze and keep track of data. The Azure Synapse Analytics tool is already used by companies like ABN AMRO Bank N.V. (OTC: ABN.AS), Wolters Kluwer N.V. (OTC: WKL.VI), FedEx Corporation (NYSE: FDX), and The Procter & Gamble Company (NYSE: PG).

Outlook

Snowflake's management was satisfied with the company's performance in its first quarter as a public company. Forecasted revenues for the quarter ending in January are within a range between $162 million and $167 million. As many businesses are increasingly shifting their activities to the cloud, the demand for warehousing solutions, like Snowflake's, will stay high, and it is safe to say that more growth is ahead of us. Keeping in mind that the demand is expected to increase, the cloud data management service market should follow suit. Therefore, Snowflake's expectation to generate revenues of $540 million in fiscal 2021 seems doable.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Snowflake Is Keeping The Magic Alive appeared first on IAM Newswire.

 

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