Snowflake(US:SNOW) Guoxin Securities·2025-11-03 05:26Investment Rating - The report assigns an "Outperform" rating to the company, marking its first coverage in this regard [4][6]. Core Insights - The company is a leading data cloud provider focused on breaking down data silos and enabling unified data management and efficient utilization through its innovative platform [1][9]. - The company has a strong growth trajectory, with projected revenues of $3.51 billion, $4.39 billion, and $5.49 billion for FY2025, FY2026, and FY2027, respectively, reflecting growth rates of 25%, 25.2%, and 25.1% [4][5]. - The company is leveraging AI to drive its commercialization process and expand its market presence [4][81]. Summary by Sections Company Overview - The company specializes in data cloud services, aiming to help organizations manage and utilize data effectively, with a revenue model based on platform usage [1][9]. - As of FY2026Q2, the company has 12,062 customers, including 751 from the Forbes Global 2000, contributing approximately 42% of its revenue [9]. Financial Performance - For FY2026Q2, the company reported revenues of $1.145 billion, a year-over-year increase of 31.78%, while GAAP net loss was $298 million, up 5.96% year-over-year [1][25]. - The company expects to achieve revenues of $3.51 billion in FY2025, with a net loss of $614 million, improving to a profit of $65 million by FY2027 [5][25]. Platform Advantages - The company's platform is designed as a cloud-native data storage solution, offering high scalability and cost control, and is recognized for its superior performance in TPC-H tests [2][43]. - The platform's unique multi-cluster shared data architecture meets diverse needs, from startups to Fortune 500 companies, and allows for flexible resource allocation [2][58]. Ecosystem and Data Sharing - The launch of Snowflake Marketplace in 2021 has enabled direct data sharing among customers across different regions and cloud providers, creating a strong network effect that enhances customer retention and consumption [3][68]. - As of FY2026Q2, 40% of customers are engaged in data sharing, up from 26% in FY2024Q2 [68]. AI Integration - The company has introduced Cortex AI, which allows users to create data agents for automated data analysis and task execution, enhancing the platform's capabilities [3][75]. - The updated Snowflake Intelligence platform, set to launch in 2025, will enable users to interact with data using natural language, further improving data accessibility and usability [3][78]. Market Potential - The total addressable market (TAM) for the company is projected to grow from $161 billion in 2024 to $370 billion by 2029, with a CAGR of 18%, driven by AI and data engineering [81].