Do You Really Understand Snowflake's Revenue Model?

Nov. 22, 2022 12:59 PM ETSnowflake Inc. (SNOW)ADSK, AMZN, GOOG, GOOGL, MSFT, PRO15 Comments


  • Snowflake has lost more than half of its market value this year, yet remains a highflying tech darling with a lofty valuation premium to peers with similar growth prospects.
  • While its consumption-based model is gaining momentum among customers looking to tighten spending in the increasingly uncertain operating environment, the looming downturn is likely to add pressure on Snowflake's fundamentals.
  • The following will analyze Snowflake's different revenue streams and revenue recognition model, and gauge the implications of recession on its near-term performance.
  • Looking for more investing ideas like this one? Get them exclusively at Livy Investment Research. Learn More »

Snowflake corporate headquarters in Silicon Valley

Sundry Photography

The Snowflake stock (NYSE:SNOW) has lost more than half of its value this year, yet it still trades at a significant premium to DevOps software peers with similar growth profiles. The company has been most commonly known for pioneering

Thank you for reading my analysis. If you are interested in interacting with me directly in chat, more research content and tools designed for growth investing, and joining a community of like-minded investors, please take a moment to review my Marketplace service Livy Investment Research. Our service's key offerings include:

  • A subscription to our daily newsletter
  • Full access to our portfolio of research coverage and complementary editing-enabled financial models
  • A compilation of growth-focused industry primers and peer comps

Feel free to check it out risk-free through the two-week free trial. I hope to see you there!

This article was written by

Let the power of quality research drive your investment convictions

Boutique investment research shop providing professional coverage on disruptive thematic equities. Our analysis provides a deep dive on growth drivers present in the secular market to identify outperforming investments.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (15)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.