Snowflake enjoyed a boffo IPO last September. Since then the shares rose — peaking on December 9, 2020 — before plunging. As of March 12 they traded a whopping 42% below that peak and considerably below their first day closing price.
After its fourth quarter earnings report yielded a larger than expected loss, Snowflake announced an investment in ThoughtSpot, a big data analysis and visualization service.
Does this bode well for Snowflake investors? In a word, maybe. Snowflake exceeded revenue expectations in its latest quarter but reported a higher than expected loss. What’s more, investors see Snowflake’s valuation as too high.
If ThoughtSpot can grow faster due to that partnership, Snowflake might generate the extra revenue it needs to exceed investors’ expectations and justify a higher stock price.
Snowflake’s Boffo Fourth Quarter
Snowflake sells software that companies use to run a data warehouse on public cloud platforms such as AWS, Microsoft, and Google. Customers pay based on how much they use the software — rather than paying a flat subscription fee, according to SiliconAngle.
Snowflake reported very strong revenue growth. Barron’s reported that its fourth quarter revenue of $190.5 million was 117% more than the year earlier and 7% above the Wall Street consensus estimate. Its product revenue of $178.3 million rose 116% from the year before — which was and 8% higher than the midpoint of its guidance range.
The problem in Snowflake’s report was that its loss was much larger than Wall Street had anticipated. As SiliconAngle reported, Snowflake’s adjusted net loss per share of 70 cents was a whopping 53 cents a share above the 17 cents that Wall Street had forecast.
Snowflake offered a stronger than expected revenue growth forecast for the current quarter. With Wall Street anticipating $196 million in revenue for the first quarter, Snowflake said its expects product revenue in the range of $195 million and $200 million. For 2021, Snowflake’s expected revenue range of $1 billion to $1.02 billion was inline with the consensus forecast of $1.01 billion.
Snowflake CEO Frank Slootman expressed pride in the company’s “strong performance — including its “triple-digit product revenue growth.” He added that the results “indicate that customers across multiple industries rely on the Snowflake Data Cloud to mobilize their data and enable breakthrough data strategies,” noted Barron’s
ThoughtSpot Takes $20 Million Investment From Snowflake
ThoughtSpot is going after the global Business Intelligence (BI) market. According to MarketsAndMarkets, BI is expected to grow ata 7.6% compound annual rate from $23.1 billion to $33.3 billion by 2025.
Market growth is due to many “factors including digital transformation, rising investments in analytics, more demand for data visualization dashboards, and increased cloud adoption,” notes MarketsAndMarkets.
Snowflake — which has been partnering with ThoughtSpot since 2019 — announced March 9 that it had invested $20 million in the company. According to CRN, the funding will be used to “accelerate development of its search and AI-based analytics software that can access and analyze cloud-based data.”
Christian Kleinerman, Snowflake senior vice president of product, said that the investment “showcases our continued partnership with ThoughtSpot and commitment to helping our customers get better and faster insights while leveraging the power of the Snowflake Data Cloud.”
ThoughtSpot previously raised $543.7 million with its biggest investment — a $248 million Series E funding — taking place in August 2019 valuing the company at $1.95 billion.
ThoughtSpot is in the middle of transitioning to a fully cloud-based business model. It is enjoying considerable growth in this part of its business. For example, annual contract value (ACV) for its cloud deals has grown 213% in the last quarter. In the last year, 54% of its ACV came from cloud products, according to Business Wire.
Why ThoughtSpot Sees Fast Growth In Its Future
ThoughtSpot did not take funds from Snowflake because it needed the money. As CEO Sudheesh Nair told me in a March 9 interview, “We raised $248 million in 2019 and we have that much in the bank today. The $20 million was not raised because we needed money. It is a validation of what customers are seeing. This partnership is [complicated by the fact that our competitor, Tableau] uses Snowflake as does Microsoft — whose business intelligence (BI) service competes with ThoughtSpot.”
Nair envisions the partnership as helping to achieve a shared vision for the future. “There are two things about Snowflake’s CEO — Frank Slootman — and its CFO: they are focused on how will we do it best for the customer and they are always not timid. They have customers like Capital One and Hulu/Disney
DIS
. Putting ThoughtSpot and Snowflake together will work because we share the same value,” he said.
Snowflake sees a large opportunity and concluded that ThoughtSpot was well-positioned to win a large piece of the pie. “Snowflake is a $60 billion to $80 billion company. What is in it for them? They know where ThoughtSpot is going and they realize that we are moving from traditional BI services — they only do a quarter of what ThoughtSpot does. We offer a massively personalized service enabling organizations to act quickly on insights generated by analyzing data,” said Nair.
Why ThoughtSpot will Take Market Share from Incumbents
ThoughtSpot’s product can be much more useful for business decision makers than traditional BI. How so? Both ThoughtSpot and traditional BI products can generate reports. As Nair said, “For example, I am in Los Altos. 10,000 people got vaccinated here. Business intelligence can report on it — producing pie charts.”
ThoughtSpot can do three other valuable things for organizations that BI can’t. Here’s how:
ThoughtSpot can provide insights — by analyzing that data — discovering that 20% of the people got vaccinated between 5pm and 6pm when everything was closing.
ThoughtSpot can model the future based on the insight to come up with solutions: finding that if the vaccination site opened at 10am and closed at 7pm it could vaccinated 15% more people.
ThoughtSpot can help organizations to implement the strategy in a way that controls their ability to act. For example, ThoughtSpot can calculate how much more the organization will need to pay the vaccinators, he explained.
ThoughtSpot is making progress towards an IPO which it believes its customers will appreciate. As Nair said, “The last quarter was the first full one since the transition we are 21% in the cloud. We want 100% of demand from the cloud by July 2021.”
To satisfy the requirements for an IPO, the company must “be predictable and [we must complete our] transformation to the cloud. We will have $100 million to $150 million in ARR and growth of 40% to 50%. We will need to be good on margins and customer net retention,” he said.
Will ThoughtSpot Partnership Help Snowflake Stock?
I do not know whether the partnership between ThoughtSpot and Snowflake will add enough revenue to Snowflake’s top line to enable it to make analysts comfortable with its high valuation.
Analysts’ views of the company suggest that many see great growth potential for Snowflake. For instance, Deutsche Bank’s Patrick Colville boosted his price target to $300 based on his perception that Snowflake has a large market opportunity and “clear product/market fit.”
Other analysts think Snowflake’s valuation is too rich. Citi’s Tyler Radke cut his target price to $295, from $325 because he thinks Snowflake’s 2021 revenue guidance implies slower growth — “a deceleration of 38 percentage points in the company’s growth rate,” according to Barron’s.
Meanwhile Bernstein analyst Zane Chane is not bullish on the stock due to its “healthy valuation and macro/rate risk facing high-multiple growth stocks.” Canaccord Genuity’s David Hynes said that the stock “remains a valuation-based Hold.”
If Radke’s right, Snowflake needs to speed up its growth. Boosting profitability would also be good.
The next year will tell whether its partnership with ThoughtSpot can help with that.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
