Snowflake IPO: Software Company Already Worth Over $ 33 Billion

Snowflake priced its initial public offering Tuesday night at $ 120 per share – more than the expected range of $ 100 to $ 110. That price range was revised upward from the original expectation of $ 75 to $ 85 earlier this month. It will trade on the NYSE under the ticker symbol of “SNOW”.

The company is selling 28 million shares and will raise approximately $ 3.4 billion from the IPO. At a $ 120 share price, Snowflake would be valued at $ 33.3 billion.

In that context, he makes Snowflake, which was founded just in 2012. Like more value than established companies in the S&P 500 Bank of new york mellon (BK), Hershey (HSY) And Allstate (All) As well as the Dow component Walgreens (Wba) And The traveler (TRV).

Snowflake is one of several “unmatched” startups expected to go public before the end of 2020, a list that also includes AirBnB, Palantir and DoorDash.

Snowflake helps blue chip companies analyze and share data in the cloud.

The company said in its most recent regulatory filing with the Securities and Exchange Commission that it now has more than 3,100 customers – double the total from a year ago. Including 146 from Fortune 500 firms.

Snowflake CEO Frank Slotman and other executives of the company are among the top individual investors in the company. Top venture capital firms Ultimate Capital, ICONIQ Capital, Redpoint Ventures, Sequoia and Sutter Hill are also significant bets of the company.

Warren Buffett regained his mojo here

Snowflake revealed last week that Salesforce, a cloud giant that was recently added to Dow, and Buffett’s Berkshire Hathaway would buy $ 250 million in snowflake stock in a private placement after each IPO.

Partnering with Snowflake can help Salesforce compete more effectively than they like Adventuress (AMZN), Microsoft (Msft) And the owner of Google Alphabet (GOOGL). Snowflake competes against Amazon’s AWS, Microsoft’s Azure and Google Cloud platforms.
Berkshire’s investment marks a rare move by Buffett to the world of tech startups. Tries to invest more in mature companies like Berkshire Apple (AAPL), Which is now the Oracle of Omaha’s top holding. Berkshire had bet on Amazon last year.

Snowflake is not a typical Berkshire bet, as it is not yet profitable – even though sales are growing rapidly.

Revenue more than doubled to $ 242 million in the last six months. But the company posted a net loss of $ 171 million – slightly less than what it had lost in the same period a year earlier.