Cloud database company Snowflake opened the business on Wednesday at more than double its list price, making CEO Frank Slotman, former CEO Bob Muglia and cofounder Benoit Dageville a billionaire.
Snowflake shares opened at $ 245 on Wednesday, more than double the California-based company’s list price of $ 120. After a delay of several hours, as bankers asked for a price at which the company would have enough vendors to sell, trading was halted briefly at $ 276, moments after it opened. As of 1 pm EDT on Wednesday, the shares were trading at $ 258.42, giving Snowflake a market capitalization of about $ 71 billion.
Snowflake, founded in 2012 in San Mateo, California by Benoit Dazeville, Thierry Cruz and Marcin Zukowski, first raised money from private investors in February 2020 at a valuation of $ 12.4 billion. Amazon reported a virtual data lake between cloud providers like Google and Microsoft, or an easily searchable software layer between cloud and providers, reporting revenue of $ 264.7 million for the fiscal year ending January 31. $ 242 million for the six months ending July 31, posting 174% and 133%, respectively, industry-leading net revenue retention of 158%.
Update: “It’s a very heavy company,” said Slotman. Forbes An interview on Wednesday afternoon. “The only problem today was that no one wanted to be a seller because the punishment was so high.”
As CEO and chairman, Slotman stood to gain a major win in the IPO, though most of his stake in Snowflake includes broadly unclaimed options in the S-1 prospectus. After his retirement spent in elite sailboat racing, Slotman had previously made public two companies: Data Domain and ServiceNow. His latest ada is set to dwarf the two. Excluding non-option options, Sloman holds approximately 5.3 million shares of Snowflake, a $ 1.4 billion stake as of 1 million EDT. It has accumulated an estimated $ 394 million (post-tax) share sale as Slotman during his six-year tenure as CEO and chairman of ServiceNow. With Snowflake’s first-day performance, Slotman now carries a net worth of $ 1.8 billion, for which he must live long enough for his remaining options to be worth millions and shares.
When asked about his billionaire status, Slotman said the title is “too short” because his decision to join Snowflake was not motivated by money. The CEO says he “does not keep score” or compares himself to other technology leaders, but tops the company’s construction. “I creep over the edge in this country, I literally have 100 bucks in my pocket, and I’m not exaggerating when I say that,” says Slotman. “I am a very big bull on occasion in this country, I cannot help just because I have done so.”
The biggest individual winner in Snowflake’s IPO is cofounder Dageville, who resides at the company as its chief technology officer. Excluding unselected options, Dageville’s 3.5% stake means he owns 8 million shares of the company, a $ 2 billion stake at a share price of $ 258. When asked about the founders of Snowflake, Slotman called him “very, very humble people” who made his work easier later in the company’s story. “They’re very supportive of what’s going on. They’re probably not as hungry as they were before, but they’re super motivated because they fell like the Snowflake version two. And they are motivated in the same way Like I am. They have to build it; I have to sell it, “said Slotman.
Of course, with many more employees and investors poised to capitalize on the huge payouts from the rapid appreciation of snowflakes on the New York Stock Exchange, it should hold such value, or even close to it, when the lockup period falls later is. With 49.5 million shares of Snowflake in the IPO, Sutter Hill Ventures now sits at a position of approximately $ 13 billion, valued at $ 258. Others, including Altimeter Partners, ICONIQ, Redpoint Ventures, Sequoia and Dragoneer, stand in the billions of profits.