Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! More Volatility This week came with more volatility - especially in high growth software. Everyone had their eye on Snowflake’s earnings, as they’ve had the highest software multiple since they went public. While the quarter appeared strong, their guidance disappointed and the stock dropped 15%. One interesting aspect of their guide - they cited a $100M full year revenue headwind due to process improvements . Said another way - they enhanced their platform to make it more efficient, so that it costs their customers less to use (oversimplified). The good news is that these process improvements will make Snowflake more price attractive to new customers. The bad news is that it will make the product “cheaper” to existing customers. Over time this will be a net positive.
Hey Jamin - Quick question. I noticed that the FDSO in the press release for $SNOW was ~360M but CapIQ it still is ~306M.. Are you noticing this with other companies or can you provide a bit more color / context from your/altimeter's perspective? Love your stuff.
Hey Jamin - Quick question. I noticed that the FDSO in the press release for $SNOW was ~360M but CapIQ it still is ~306M.. Are you noticing this with other companies or can you provide a bit more color / context from your/altimeter's perspective? Love your stuff.