Snowflake tops cloud software cos. focused on revenue KPIs: Baird
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2 months ago
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- Investment firm Baird has looked at management compensation and incentives across the cloud software space and has found that they are increasingly including revenue-related key performance indicators, “with an increasing focus on profitability and cash flow over the past few years.”
- The firm looked at Akamai Technologies (NASDAQ:AKAM), Confluent (NASDAQ:CFLT), Datadog (DDOG), Dynatrace (NYSE:DT), Fastly (FSLY), Informatica (INFA), MongoDB (MDB), Snowflake (NYSE:SNOW), Bandwidth (BAND), DocuSign (DOCU), Amdocs (DOX), 8×8 (EGHT), Five9 (FIVN), RingCentral (RNG), Twilio (TWLO), Zoom (ZM), Apple (AAPL) and Axon Enterprise (AXON) for the study and found that many of them have both short-term and long-term incentives, with Snowflake leading the way with 100% of its short-term incentive KPI weighted towards revenue.
- Other companies that have weightings of greater than 50% for revenue include Confluent (75%), Fastly (67%), Five9 (75%) and Zoom (80%). Three companies — Akamai, RingCentral and Apple — have weightings of 50%.
- Conversely, MongoDB is the only company with a 100% weighting of its long-term incentive KPIs focused on revenue, while 100% of the weighting for Apple and Fiven9’s long-term incentive KPI are focused on total shareholder return. 100% of the long-term incentive KPI for 8×8 is focused on its market cap and stock price.