Wall Street is WRONG - Snowflake ($SNOW)

Snowflake ($SNOW) - Stock Base Compensation (SBC) is out of control and 50% of revenue. Wall Street with wrong

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[slowiedovie]

Same as Palantir. This is like a new trend for those unprofitable businesses

[RationalRalph]

How? It’s a good question, but can it be rationally answered? Maybe one can expect to still make money even with stock based give away dilution? Can you do the math on this and see based on future revenue predictions if the company will be profitable in 5 years and how much so even if they give away half their profits in stock based compensation? SaaS model profits are usually quite absurd long term

[jeremynewell]

Correction: this is not part of how they run their business. THIS IS THEIR BUSINESS!

[hawtwax]

Can you do a similar review on Palantir?

[RationalRalph]

Your future telling and saying snowflake won’t have competition in the future that eats that trillion dollar revenue

[dontplayformenero]

Excellent observation. SBC is totally egregious in practically all of these unprofitable companies, Unity Software too. It's just a piggy bank for management that company

[baumulrich]

why would hundred or two hundred *million* SBC matter on a 40 *billion* with close to 4 *billion* revenue matter? I think you don't understand the difference between a million and a billion. usual problem for iq 80 folks.

this company is growing 30% yoy, and currently this means it *grows* more per quarter than they are giving away, and as a Saas business with insane NRR score, that is recurring revenue and growing from there onwards. in a couple years, giving away even half a bil in SBC will be equally irrelevant.

it's a future trillion dollar company (10y) that currently you can buy for pennies on the dollar