Snowflake Inc. (SNOW): history, ownership, mission, how it works & makes money

A Brief History of Snowflake Inc.

Company Overview

Snowflake Inc., founded in 2012, specializes in cloud-based data warehousing services. It has rapidly grown to become a leader in data analytics, enabling organizations to store, manage, and analyze data efficiently across various cloud platforms.

Financial Performance as of July 31, 2024

As of July 31, 2024, Snowflake reported total revenue of $1.70 billion for the six months ended, reflecting a 31% increase compared to $1.30 billion for the same period in 2023. The product revenue alone reached $1.62 billion, up 32% from the previous year.

Customer Metrics

As of July 31, 2024, Snowflake had 510 customers with product revenue exceeding $1 million, an increase from 399 such customers in the previous year. This group represented approximately 65% of total product revenue.

Stock Performance and Market Capitalization

As of July 31, 2024, Snowflake's stock was trading at approximately $135.29 per share, with an available repurchase amount of $491.9 million under its stock buyback program. The company repurchased 5,939 shares during the six months ended July 31, 2024, totaling $916.3 million.

Operational Highlights

Snowflake's net revenue retention rate was 127% as of July 31, 2024, indicating strong customer satisfaction and growth among existing clients. The company has continued to invest heavily in research and development, with expenses totaling $848.5 million for the six months ended July 31, 2024, a 43% increase from the prior year.

Equity and Valuation

As of July 31, 2024, Snowflake's total stockholders' equity stood at $4.13 billion. The accumulated deficit increased to $5.63 billion, reflecting ongoing investments in growth and expansion.

A Who Owns Snowflake Inc. (SNOW)

Major Shareholders

As of 2024, the ownership structure of Snowflake Inc. (SNOW) is comprised of various institutional and individual investors. The largest shareholders include:

Stock Performance and Repurchase Activity

In the first half of 2024, Snowflake Inc. executed a significant stock repurchase program, purchasing 5.9 million shares for an aggregate price of $916.3 million at a weighted-average price of $154.30 per share. As of July 31, 2024, $491.9 million remained available for future repurchases under this program.

Equity Incentive Plans

Snowflake has established the 2020 Equity Incentive Plan, which allows for the issuance of various forms of equity compensation. As of February 1, 2024, the shares available for grant under this plan increased by 16.7 million shares.

Stockholder Equity Analysis

As of July 31, 2024, the total stockholders' equity was reported at $4.13 billion, with the following components:

Performance Metrics

Key performance metrics as of July 31, 2024, include:

Conclusion on Ownership Dynamics

Snowflake's ownership is characterized by significant institutional investment, a structured equity compensation plan, and active stock repurchase initiatives, reflecting its strategic focus on shareholder value enhancement as of 2024.

Snowflake Inc. (SNOW) Mission Statement

Snowflake Inc. aims to provide a cloud-based data platform that enables customers to consolidate data into a single source of truth, driving meaningful insights and facilitating data sharing and collaboration across organizations. The company emphasizes a customer-centric approach, focusing on consumption-based pricing that allows clients to pay only for the resources they use. Snowflake's mission is anchored in its commitment to innovation and growth in the realms of data science, artificial intelligence, and machine learning.

Financial Overview

As of July 31, 2024, Snowflake reported the following key financial metrics:

Key Business Metrics

Snowflake tracks several key business metrics to evaluate its performance:

Stock Performance

As of July 31, 2024, Snowflake's Class A common stock was trading at approximately $154.30 per share, reflecting a strategic stock repurchase program initiated by the company. The board authorized a repurchase program of up to $2.5 billion, expanding the total authorization to $4.5 billion as of August 2024.

Conclusion on Mission Statement Alignment

Snowflake's mission statement is reflected in its robust financial performance and commitment to innovation. The company has consistently invested in research and development, focusing on expanding its platform's capabilities in AI and machine learning, which are central to its growth strategy.

How Snowflake Inc. (SNOW) Works

Business Model

Snowflake Inc. operates as a cloud-based data platform, providing solutions for data storage, processing, and analytics. The company utilizes a unique architecture that separates storage and compute, allowing users to scale resources independently, optimizing cost and performance.

Financial Performance

As of July 31, 2024, Snowflake reported the following financial metrics:

Customer Metrics

As of July 31, 2024, Snowflake had the following customer-related statistics:

Operating Expenses

For the six months ended July 31, 2024, Snowflake's operating expenses were broken down as follows:

Cash Flow and Liquidity

As of July 31, 2024, Snowflake's cash, cash equivalents, and investments totaled:

Stock Performance and Repurchase Program

In the second quarter of 2024, Snowflake repurchased:

As of July 31, 2024, Snowflake had $491.9 million remaining for future stock repurchases under its program.

How Snowflake Inc. (SNOW) Makes Money

Revenue Streams

Snowflake Inc. primarily generates revenue through fees charged for compute, storage, and data transfer resources consumed on its platform. In June 2024, Snowflake allowed customers to select these resources separately, enhancing flexibility in billing.

Financial Performance Overview

As of July 31, 2024, Snowflake reported the following financial metrics:

Customer Metrics

As of July 31, 2024, Snowflake had:

• 10,249 total customers, up from 9,424 in January 2024.
• 736 customers from the Forbes Global 2000 list, contributing approximately 42% of total revenue for the six months ended July 31, 2024.
• Net revenue retention rate of 127%.
• 510 customers with trailing 12-month product revenue greater than $1 million.

Cost Structure

For the three months ended July 31, 2024, Snowflake’s operating expenses were as follows:

Stock Performance and Buybacks

In August 2024, Snowflake's board authorized an additional $2.5 billion for stock repurchases, extending the buyback program until March 2027. As of July 31, 2024, the company had repurchased 5.9 million shares for $916.3 million at an average price of $154.30 per share.

Liquidity and Cash Flow

As of July 31, 2024, Snowflake reported:

For the six months ended July 31, 2024, Snowflake's net cash provided by operating activities was $425,333,000 compared to $382,635,000 for the same period in 2023.