[Earnings Summary] Market Response Colder than SNOW

Happy Thursday to every mooers! Wish you have a great trading today. One of the intereting stocks - $Snowflake (SNOW.US)$ release its FIRST earnings report yesterday, but the performance is not that good. Since its IPO in September, Snowflake has been on a rocky ride since going public, the stock price have already rised 154.7%.  The first earnings report showed that the loss exceeded expectations, and the stock price once fell 9% after market.

We highlight some questions and answer you might want to know for your kind reference. The materials below come from the latest earnings conference call.

Q: What you've noticed in terms of the pace of consumption trends as the pandemic has been going on and as people prioritize moving to the cloud?
A: We have a data set on our Snowflake did a marketplace that's listed by a company called Star Schema, which provides detailed incident of fatality rates, very, very detailed and are updated continually. And we saw almost our entire customer base access that data within days and weeks and when that happens, it drives consumption and that access has continued to this day.

So sometimes you have catalysts in specific data sets that really help customers overlay data run models, understand their demand environment better and so on. It's hard to generalize, this is just sort of a single anecdote that kind of stands out to us.

Q：Could you talk about the opportunity you see for Snowflake in insurance or any other vertical, maybe that stood out this quarter where you're seeing outsized traction?
A：We've been involved in a lot of insurance campaigns and they're very keen on transformation more so than just modernization. Some of the - many of the larger insurance companies have very broad cross selling capabilities. They do not have the systems to - from an analytical data standpoint to support that. So they're very, very intent on sort of dislodging themselves from their - their historical on premise systems and really gained the promise of Data Sciences and machine learning and you need to have platforms like Snowflake to be able to enable that.

So yes, we announced a number of insurance accounts this quarter and we love that industry that because as you said, they're very data rich. There is enormous potential for us to really digitize if you will, and really bring digital transformation to the insurance industry, so super exciting.

Q: Who do you see the kind of most formidable competitors right now? What's happening in the on-premise world? Is that still kind of low hanging fruit?
A: Our competitive environment is very much dominated by the public cloud vendors. I think we said that over and over and it really hasn't changed. The only time that we're dealing with on-premise environment as customers are trying to figure out how to modernize and move off of those platforms, they really are not viewed as options going forward. So it may be that our filter is biased, but where our competitive dynamic is very much centered on the three public cloud platforms that is the vast majority of competitive interaction that we have.

Q: As you look at your growth forecast over the next 12 months, how much of it do you feel like you have visibility on from the installed base today, the customers you just won and natural growth in usage and then how much do you think you have to - to go out and win?
A: First of all, going into a quarter, virtually all of our revenue is coming from our existing customers, very little comes from customers that are landed in the quarter and it's less than 5% come from our on-demand customers.

Over the next 12 months, it's still the vast majority of our revenue is coming from our existing customers that we have and we do see the growth in those customers. Sure. We need to sell them more, but most of our growth is coming from our existing customers over the next 12 months. Longer term it's super important that we acquire new customers, because those will be the growth drivers in two to three years or so.