![]() ![]() This adds considerably to Snowflake’s current total addressable market which the company expects to reach $248 billion by 2026.Īs I wrote earlier this month, State Street, a provider of financial services to institutional investors, used Snowflake as a building block for its Alpha platform, “one of the industry's first front- to-back asset servicing platforms.” Snowflake expects the AI market to grow tenfold by 2032 to $118 billion in annual revenue. He said developers have used its Streamlit platform to build 1,500 LLM-powered apps, including Open AI's GPT Lab that allows users to create custom AI assistants. In Q1, more than 1,500 customers leverage Snowflake for one of these workloads, up 91% year over year.” According to Slootman, “data science, machine learning, and AI use cases on Snowflake are growing every day. In May, Snowflake said generative AI - was already enhancing growth. CEO Frank Slootman said generative AI’s need to consolidate “massive amounts of data into a single cloud-enabled platform from which customers can derive insights and build applications” will boost demand for the company’s products, according to Snowflakes ’s first quarter earnings call transcript. In May, Snowflake discussed how much growth it expects from generative AI. ![]() ![]() How Snowflake Will Benefit From Generative AI According to Investor’s Business Daily, Salesforce recently introduced “Genie, a real-time data solution, that could clash with Snowflake at some point.” IBD noted Amazon Web Services or Google cloud could “ratchet up competition.” Finally privately-held Databricks - recently valued at $28 billion - could intensify competition, wrote IBD. While Scarpelli said Snowflake does not face competitive pressures, incumbents and startups are introducing new products. Snowflake lowered its fiscal 2024 outlook by $100 million since March to about $2.6 billion - which would mark 24% growth for the year.ĬFO Mike Scarpelli told investors Snowflake bookings are slowing down “not due to competitive pressures, but because customers remain hesitant to sign large multiyear deals,” Dow Jones reported last month. Up about 34% to $625 million - about $21 million short of analyst estimates. Second quarter product revenue forecast.Up 50% to $590.1 million - about $20 million more than analysts projected. Here are the key numbers from its Q1 report, according to Bloomberg: Snowflake’s growth has been slowing dramatically since fiscal 2020 (ending in January 2020) when it enjoyed 174% annual growth - to 124% (2021), 106% (2022), and 69% (2023). However, investors sent its stock down 17% - its biggest one day drop, according to Bloomberg - on a slower than expected forecast for second quarter revenue. ![]()
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