Matt Aird’s Post

In 2022, Snowflake had a mind-boggling revenue retention rate of 178%. Today, that number has fallen to 131%. A company’s NRR (net revenue retention) tells us about the growth of revenue from existing customers, and it is one of the most important metrics for SaaS companies. What explains the 47% decline in Snowflake’s NRR? Having spent the last few months talking to Snowflake customers, part of the reason is optimizations. Data teams are starting to figure out how to get the most out of their Snowflake credits, in times when cloud costs have come under scrutiny from leadership. Eight straight quarters of decline in NRR signals a permanent shift in how data infra costs are being managed, by both startups and large enterprises. But even after this 47% decline, Snowflake remains a leader among publicly traded SaaS companies on the NRR metric. That just speaks about the strength of their offering. At Baselit (YC W23), we are extremely bullish on Snowflake, and have built our product on top of their platform! 🚀 #snowflake #dataengineering

❄ The blueprint behind Snowflake's $3B ARR success: What every SaaS company should learn — Founded with the goal of transforming data warehousing and analytics, Snowflake has consistently pushed the boundaries of what is possible. Their story exemplifies how strategic focus and customer-centricity can translate to phenomenal growth. 🔑Here are the key takeaways from Snowflake’s success — PS — At Zenskar, we share the commitment to help companies succeed. While we streamline billing and revenue recognition for their business, we enable them to build strong relationships with their respective clients and scale effectively. #Snowflake #CustomerSuccess #ARR #Finance

🚀 Snowflake Q2 FY2025 results are out, and it's a tale of growth and challenges. Here's what it means for the SaaS market: 📈 𝗦𝘁𝗿𝗼𝗻𝗴 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 Snowflake's product revenue hit $829.3 million, up 30% YoY. This robust growth in a challenging macro environment signals resilience in the SaaS sector. 🔄 𝗡𝗲𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗦𝗹𝗼𝘄𝗱𝗼𝘄𝗻 At 127%, Snowflake's net revenue retention rate is still impressive but continues to decline. This might be a warning sign for the broader SaaS market about customer spending patterns. 🤖 𝗔𝗜 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗣𝗮𝘆𝗶𝗻𝗴 𝗢𝗳𝗳 With over 750 customers already using Snowflake's new Cortex AI capabilities, it's clear that AI investments are becoming crucial for SaaS growth. 💼 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵 Snowflake now boasts 510 customers with >$1M in trailing 12-month product revenue. This highlights the continued enterprise appetite for robust SaaS solutions. 📊 𝗕𝗼𝘁𝘁𝗼𝗺𝗹𝗶𝗻𝗲: 𝗖𝗮𝘂𝘁𝗶𝗼𝘂𝘀 𝗢𝗽𝘁𝗶𝗺𝗶𝘀𝗺 While Snowflake raised its full-year guidance, the stock initially dipped post-earnings. Reflects the market's high expectations and scrutiny of SaaS valuations. I know it sounds obvious, but it shows that in the face of increasing competition - for Snowflake especially from vendors like Databricks - SaaS companies need to continue to innovate while maintaining solid financials to thrive. #saas #startups #tech #stocks #stockmarket #snowflake

As Snowflake goes, so goes SaaS! A real bellwether… even in the wake of a tough earnings call.. Let’s take a step back and look at the trajectory, IPO => Today...👇 Valuation: Sep. 2020: $120/share IPO price…. Opened at $245/share ($68B) Nov. 2021:  Peak price of $397/share Today:        $185/share (25% below first trade) Metrics: Growth:         117% ============>32%   NRR:             166% ==> 178%===> 131%  FCF Margin: -16%  ===========> +27%  GTM Spend*: 117% ==> 96%====> 187%  * GTM Spend Ratio = S&M ÷ Net New ARR This really is just an “exaggerated version” of everyone else! And let’s keep it real… today’s metrics are still AMAZING: 32% Growth! 131% NRR! 27% FCF! 187% S&M ÷ Net New ARR! But here’s something curious: Doesn’t 131% NRR means 31% growth from the base? 🤔 How do we square that with 32% TOTAL growth? New customers only contributed 1%?!!! Naaaah.  Welcome to the anomalies and idiosyncrasies of NRR definitions. I suspect “real NRR” looks more like 115% to 125%. Still damned good. And of course, what we really want is gross retention (GRR).  But virtually no public company give us that, except ironically ServiceNow, Slootman and Scarpelli’s last company... Finally, as to efficiency, FCF growth has been tremendous!  Now at 27% margin. +27%... coupled with 31% growth, we’re talking “Rule of 58%”! Of course, I’d much prefer the 50%+ growth and 20%+ FCF margins of a year ago! I still love this company… but I’m just wondering where and when the vectors start to turn… ... and what it means for the rest of us! #SaaS #Metrics

❄ Incredible video from Snowflake's enablement team on their usage of the Seismic Enablement Cloud. 📚 Enablement is about way more than the organisation and distribution of content, or assigning lessons for onboarding new hires. ⏰ Enablement is woven into the fabric of almost every activity of the revenue team, helping them save time and be more performant in their roles 👀 Have a watch of Vivi Michael's story and see what you think. #happycustomers #salesenablement #revenueenablement

Did anyone else catch the Snowflake CEO trashing Databricks last week, without mentioning Databricks? He posted "Spark-based SaaS" was much more expensive than Snowflake. Spark-based Saas, ey? What do you mean? - Jaco van Gelder explains in more detail: https://lnkd.in/eyjRg25u - Josue A. Bogran reflects on it here: https://lnkd.in/ewnChSzH Both tools are developing well I think, but right now Databricks seems a little ahead for ML and MLOps. The healthy competition should help both push forward faster, which is great! #dataengineering #data #machinelearning

Time is money – and Snowflake helps customers save both. Snowflake consistently proves to provide a lower TCO through automation of cluster management, maintenance, upgrades and performance improvements to help customers massively save on time and costs otherwise spent on onboarding and manual platform management. Customers can now reallocate valuable resources to launching products and projects faster. #TimeIsMoney Have a read on the comparison between Spark-based SaaS and Snowflake, and discover how each impacts organisations differently: https://okt.to/0pOIiK

It is a good public conference by Snowflake as a #world_Tour a data & AI e-platform on cloud without silos! You can connect to YouTube and watch it to explore the newest platform supporting enterprise growth & transformation! #Enterprise #Software #Retail #cloud_platform

Hello community, Great news! 🎉 Databricks has now made its setup process as easy as Snowflake’s by launching a SaaS version with a 30-day, $400 credit trial. All you have to do is provide your email to start exploring modern data warehouse technologies. 🚀 If you've been thinking about trying Databricks, this is the perfect time to do it! For the link to the SaaS trial version, check out the comment section below. 👇 #Databricks #DataWarehousing #SaaS

Read this guide to learn about 12 common culprits that cause Snowflake costs to rise unexpectedly and a practical solution specific to analytics. Download now! https://shorturl.at/TEOTi Sponsor: Qrvey #ProductManagement #Snowflake #SaaS