Highly valued software startup Snowflake files for IPO

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Snowflake Inc. , an enterprise-software startup valued at more than $3 billion by private investors, is planning an initial public offering. The eight-year-old data-management company set a goal of raising $100 million in a filing with the U.S. Securities and Exchange Commission, though that is typically a placeholder amount that will be updated in future filings. Snowflake was expected to go public this year by many observers, and files amid a rush of IPO filings taking place despite a global pandemic. Other software companies to file for IPOs Monday included Unity Software Inc., Sumo Logic and Jfrog Ltd. The San Mateo, Calif., company reported that revenue more than doubled in its most recent fiscal year, which ended Jan. 31, to $264.7 million from $96.7 million; that growth stayed consistent in the first six months of the current fiscal year, when sales grew to $242 million from $104 million. Net losses also grew in the previous fiscal year, but are now declining – Snowflake reported a net loss of $348.5 million in the 2020 fiscal year, up from a loss of $178 million, but losses in the first six months of the current fiscal year totaled $171.3 million after hitting $176.9 million in the same period the year before. The company intends to list on the New York Stock Exchange under the ticker SNOW, and the offering will be led by Goldman Sachs and Morgan Stanley.
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