In this solo episode, CJ experiments with a new format called S-1 Cinema as he delves into the intricacies of Snowflake’s remarkable IPO which debuted on September 16, 2020. Excluding social media giants like Facebook and Snap Inc., it stands as the biggest software IPO to date, marked by an explosive stock price jump that surpassed its already high issue price. CJ unpacks Snowflake’s cloud-based data storage offering and its usage-based pricing model. He explores the company’s unique position at the time of its IPO, operating as both a competitor to and a customer of major cloud providers like AWS. CJ also discusses the company's financial metrics, growth, the leadership changes that shaped its trajectory, and the major investors that profited. Listeners will learn about the IPO pricing strategy that left significant money on the table and how the company fares today.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

—

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Intro to Snowflake’s IPO

(02:27) Sponsor – Operators Guild | Maxio

(04:54) What Snowflake Does and Its Pricing Model

(07:39) Snowflake as a Competitor and User of Cloud Services

(09:02) Snowflake’s Metrics and Cash Burn at IPO

(11:20) How Frank Slootman Became CEO

(14:16) Intro to Frank Slootman and His Meritocracy

(16:09) Sponsor – Leapfin | Mercury | NetSuite

(19:22) Intro to CFO Mike Scarpelli

(20:59) The IPO Price and What They Left on the Table

(23:25) The Companies That Made Money on the IPO

(26:08) Other Companies That IPOed in 2020

(26:59) How Snowflake Is Doing Today

(29:09) Three Core Things to Snowflake’s Identity

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe

The Largest Software IPO Ever: How Snowflake Still Left Money on the Table

Run the Numbers