In the upgrade, Thill noted that Snowflake (SNOW), led by Frank Slootman, has “best in class basics” and its implementation has been “near flawless” over the past few quarters. , thanks to its “all-star management team” that has successfully expanded software businesses elsewhere.
“We see some parallels in between [Snowflake] and other best stories on software platforms like Salesforce (CRM), ServiceNow (NOW) and Datadog (DDOG) and remember that the company is growing faster than peers like it. [revenue] scale, ”Thill wrote in a note to clients, adding that Snowflake’s revenue growth in fiscal 2022 topped the aforementioned companies.
Snowflake shares (SNOW). rose more than 2.5% to $ 152.26 in premarket trading on Tuesday.
In addition, Thill noted that although Snowflake (SNOW) is rooted in data warehousing, which is estimated to be a $ 14B market, it has quickly transitioned to becoming a data cloud company, with a total addressable market of over $ 90. B.
The company’s management team also believes Snowflake (SNOW) may have a bigger chance ahead of it than ServiceNow (NOW), which has a $ 100B market cap, compared to $ 47B for Snowflake.
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