Cloud-based data-warehouse company Snowflake recently launched its initial public offering (IPO), said CNBC. The filing came after the firm earned $242 million in revenues during the first half of 2020.
Considered a fast-growing firm in Silicon Valley, Snowflake offers cloud data storage services to businesses, which allow clients to store and manage their data remotely. Companies use such similar services for quick access and analysis of information.
Snowflake’s cloud-based storage services are expected to compete with tech giants such as Amazon, Google, and Microsoft. The two companies are also the startup’s key partners as it relies on their infrastructure.
Former ServiceNow CEO Frank Slootman led the 2020 IPO. With its success this year, the startup is seen as one of the most anticipated public offerings along with Airbnb and Palantir, both of which set to launch soon.
CNBC noted that late-stage companies backed by venture firms are currently benefiting from a surge in new names in the Nasdaq.
The stock exchange has also been seeing a demand for new players as established companies such as Apple has reached the market cap of $2 trillion. Amazon and Microsoft are nearing the cap with $1.6 trillion.
Founded in 2012, Snowflake has been offering its cloud-based storage platform since 2014. According to the filing, its customers include Capital One, Adobe, Sony, and McKesson.
Capital One, one of the startup’s most significant clients, has been onboard since 2017. Its services “spread rapidly to additional lines of business to satisfy latent demand for greater data access within the broader organization and address new business opportunities.”
The data-warehousing firm’s services also helped Capital One become more efficient by reducing the time needed to add new workloads. This allowed the client to perform quick analytics while fulfilling the bank’s “high availability and resiliency needs.”
Snowflake’s services rely on existing cloud infrastructures such as Amazon Web Services, which is its most significant partner. According to the IPO filing, the startup will be spending $1.2 billion from August 2020 to July 2025 to pay for infrastructure.
In comparison, key partners-cum-competitors such as Amazon, Google, and Microsoft all have their own data warehouse called Redshift, BigQuery, and Synapse, respectively.
Meanwhile, Snowflake’s biggest stakeholder is Sutter Hill Ventures owning 20% of the shares. Altimeter, ICONIQ, Redpoint Ventures ad Sequoia all own stakes in the startup.
Snowflake is expected to be listed on the New York Stock Exchange under the symbol SNOW.