Snowflake in an avalanche

28 Aug 2020 By Robert Cyran Follow @rob_cyran

The data-warehouse firm is more than doubling revenue, but sports big losses, too. Sticky corporate IT spending and customers’ fear of having no alternative to giants like Amazon bolsters Snowflake’s potential. But rivals’ valuations mean its IPO price is likely to hit thin air.

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Snowflake’s prospectus for its initial public offering was unveiled on Aug. 24, after the company filed it confidentially earlier this year. It shows that the cloud-based managed data warehouse firm’s revenue was $242 million for the first six months of 2020, an increase of 132% from the same period last year. Snowflake operating loss for the most recent six months was $174 million, compared with an operating loss of $183 million in the first half of 2019.

A funding round in February valued Snowflake at more than $12 billion. The company will have two classes of shares, with B shares holding 10 times as many votes as A shares. Snowflake has not yet said how many shares it will sell nor has it indicated a price.

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