Third Bridge provides integrated research solutions for the world’s top investors and business leaders. Our expanding suites of products can help you drive change, putting crucial insights, value chain maps and experts at your fingertips.
The following transcript is generated from Third Bridge Forum, the biggest archive of high-quality expert interviews in the world, providing investors with critical knowledge to make smarter and faster decisions.
Submit your details to gain access to our premium content. If you would like to discuss our coverage of companies and sectors and how we can help you move faster and with greater conviction, please contact us today.
Specialist
Former Director at Snorkel AI
Agenda
- Snorkel AI’s overall operating environment and market positioning across competing vendors such as Scale AI
- Value proposition, revenue drivers and growth outlook
- Go-to-market strategy, customer segmentation and demand trends
- Product roadmap and R&D strategy
- Industry trends and outlook for consolidation
Questions
1.
How would you describe Snorkel AI’s value proposition and core products across its platform?
2.
Could you discuss Snorkel’s product offerings such as Snorkel Flow, Snorkel Foundry and the more recently introduced Snorkel GenFlow?
3.
What is generating revenue at Snorkel today? Is it possible to segment revenue by the various product categories or is there another way to roughly split percentages?
4.
Snorkel estimated a 2019 TAM of USD 37.9bn, but I’ve seen recent TAM estimates for the greater enterprise AI market in the range of 11-12 figures – really large estimates. How should we think about sizing the company’s TAM today? Does USD 37.9bn still sound accurate?
5.
Could you roughly estimate what percentage of the overall enterprise AI platform TAM Snorkel might account for?
6.
How would you characterise Snorkel’s primary customer segments and the respective split or concentration, approximately?
7.
How difficult is the sales motion? It seems that other enterprise AI vendors have met challenges during the sales process due to the complexity of the solution.
8.
Is scalability a problem at all for enterprise customers, just ensuring the level of support and platform scalability is there?
9.
Would you say Snorkel is investing in an efficient and strategic way to accommodate additional support for enterprises? What challenges would you note?
10.
Are partnerships significant to Snorkel’s go-to-market or channel strategy?
11.
There are a lot of enterprise AI TAM estimates, some of which are very large – one put the 2021 TAM at USD 11.4bn, growing to a 2030 TAM at a 34.6% CAGR. How would you characterise Snorkel’s growth over the past year compared with the 34.6% benchmark? What is potentially driving the company’s growth?
12.
Based on your experience and time at Snorkel, then observing from the outside how the company has been performing, where do you think its growth rate is today? How might it develop?
13.
What features or products are driving expansion revenue? It seems there might be some room to expand. Would that be the case?
14.
Could you give a rough percentage estimate of a typical expansion motion? How much can expansion motions increase and improve revenue over 1-2 years?
15.
Can you think of possible outcomes where customers might expand from one use case to perhaps three, four or five? How much room is there to grow?
16.
Do you have a rough estimate for the split of revenue growth for new logo vs expansion revenue, given how much opportunity there is on the expansion side?
17.
In January 2023, Scale AI announced a 20% workforce cut citing scaling too quickly and having to cut due to macroeconomic conditions. How do you expect the macroeconomic climate to impact Snorkel?
18.
Could you describe Snorkel’s competitive positioning? How is the company differentiated from key competitors such as Scale AI?
19.
Can you elaborate on competitors that are specifically playing in the data labelling space, such as Scale AI and Labelbox? Who is Snorkel’s most direct competitor? When the company wins or loses in a bake-off scenario, what comes up as a pain point or point of differentiation?
20.
You mentioned another set of competitors for the end-to-end enterprise AI solutions in the market – some that come to mind are DataRobot, Dataiku, Palantir and C3.ai. Which vendors would you say are the most significant threat to Snorkel?
21.
How sticky is the Snorkel platform? What was the most common reason cited by customers when they churned?
22.
What’s your view on Snorkel as a future acquisition target vs potential IPO? What company profile might represent a potential buyer?
23.
If Snorkel decides on the IPO route, how far out do you think that would be?
24.
What should we expect from Snorkel’s product roadmap moving forwards, noting any gaps in the current offering? Which markets might the company try to move further into?
25.
What’s your view on Snorkel seeking out any acquisition opportunities? Do you think that is a possibility?
26.
Do you have any additional thoughts to share on Snorkel’s management team or current strategy?
27.
What do you think the future holds for Snorkel?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary 48 hour week trial
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
