Snowflake IPO’d in September & It’s Already Bigger than IBM

Snowflake IPO on September 16, 2020

Snowflake [$SNOW] is going bananas, surpassing IBM in market cap after being on the market for only 12 weeks. Normal? On Wednesday, the cloud-computing company reported that Q3 revenue more than doubled from 2019, and the stock has soared 183% to $339.89 since the IPO in September.

$SNOW has been on a crazy bender in its short life as a public company. The cloud-based provider of data warehousing software, which makes it easier for companies to compile, view, analyze and share data from a single dashboard, the IPO was in September at $120 a share.

Needless to say, its helped make CEO Frank Slootman one of the best-paid tech-exec’s he received a lavish compensation package upon joining Snowflake in April 2019, which grants him a slug of options every month—over four years—that are now worth almost $95 million each, or about $1.1 billion annually. He’s sitting on 13.7 million options with a strike price of $8.88. and while taking down a $375,000 annual base salary.

Snowflake is built to solve data problems. It offers cloud-based data storage and analytics services through which businesses can have a single truth of data, consistency, resiliency, flexibility and fast access to data. Snowflake products work on major public cloud providers such as AWS, Azure or GCP. On top of Snowflake, companies can build out a proper data warehouse, enable data analytics, power data applications and facilitate data exchange with other entities.

Once the options package is totally paid out in early 2023, it would be worth about $4.5 billion at the current stock price. The massive pay package is due in part to a result of Snowflake’s soaring valuation. In October 2018, about six months before Slootman joined the team, the company raised put up a valuation of about $3.5 billion. Today, it’s worth $96 billion.

CEO Michael Scarpelli, who joined a few months after Slootman, has a similar compensation structure. His options are worth about $25 million a month at the current share price.

$SNOW rose 30.3% in November

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