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No. of Recommendations: 8
They r guiding for full year revenue growth this year of around 114% mid point compared to 164% growth last year. They also guide product revenue growth 100% in Q4 compared to 115% in Q3. It’s a clear deceleration.

If they make this year around 580m in top line and grow next year at around 90-100%, we r looking at 1.1-1.2b next year revenues. Today’s valuation 80b. I GUESS it’s stretched. Looking forward to reasonable valuation before starting a position.

What’s noticeable is that SNOW stressed that it’s NOT A SAAS COMPANY as its revenue is 93% usage based - look at earnings presentation page 9. This obviously reminds us of Fastly’s business model. What this means is that SAAS predictability brought by subscription is not present here. So, revenues could be lumpy. This is opposite to, for example, Zoom’s model which is subscription based and WHEN we will enter into post-vaccine world most of the subscriptions will stay and produce revenues.

On the other hand, as Saul says data is unlimited and it will be multiplying exponentially in the future. This is a long-term tailwind for Snowflake with its usage-based model.

I also wonder how shall we interpret 930m in RPO (240% growth) considering that it’s usage based model?

Snowflake is on my watching list, but I’m not buying here. In my eyes from capital allocation perspective there are better investments discussed on our board.

Unless I’m missing something here...? :)
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