Benzinga | Oct 13, 2020 04:29AM EDT

Snowflake Has Multi-Million Tech Supply Contract With Goldman Sachs: Report

Software maker Snowflake Inc (NYSE:SNOW) signed a multi-million dollar renewal agreement with Goldman Sachs Group Inc. (NYSE:GS) this year, Bloomberg reported Monday.

What Happened: The agreement renews the New York-based investment bank's commitment to using Snowflake's technology -- deployed for its Marcus unit and transaction-banking platform for more than two years, people familiar with the matter told Bloomberg.

The deal was reportedly signed in Snowflake's second quarter ended July and has not been made public yet.

Why It Matters: The San Mateo, California-based software firm is adding more large enterprise clients to its portfolio with Capital One Financial Corp. (NYSE:COF) becoming a client in July 2017 in a deal now valued at $100 million, Bloomberg noted.

Snowflake shares more than doubled on their first day of trading last month and have held on to those gains.

The company's $3.4 billion offering was the largest software IPO in history. Its current market cap is $67.5 billion.

Analysts have given the cloud-based data warehousing firm a thumbs up. Piper Sandler analyst Brent Bracelin said the firm's technology addresses a $300 billion enterprise data market.

"The company possesses a unique technology advantage that will give them a dominant competitive position in the data cloud in both the short and long term," according to Truist Securities analyst Joel Fishbein.

Stifel analyst Brad Reback sees "numerous drivers to sustain 50%+ growth" for the company.

Price Action: Snowflake shares closed almost 2.5% higher at $243.97 on Monday and gained 0.71% in the after-hours session.