Snowflake moves executive office from California to Bozeman, Montana
Viewed through the Montana ranch entrance on the courses with a view of the snow capped Crazy Mountains of central Montana in the background, the Crazy Mountains rise to over 11,000 feet and are located north of the ‘Interstate-90 between Billings and Bozeman Montana; they can be seen for many miles along this stretch of the Interstate. (Photo by: Education Images / Universal Images Group via Getty Images)
Educational images | Universal Images Group | Getty Images
Snowflake, the cloud-based data analytics provider that hosted the biggest ever software IPO in the United States last year, has become the latest tech company to abandon California.
In his earnings Press release On Wednesday, Snowflake’s data line appeared as “No-Headquarters / BOZEMAN, Mont.” No later than May 3, when the company ad on the date of its first quarter earnings report, that same line said “SAN MATEO, Calif.”
Snowflake SEC filing Wednesday showed Bozeman an address for his executive office. The company explained why in a footnote:
“We are a Delaware company with a worldwide workforce and no head office. Under the rules of the Securities and Exchange Commission, we are required to designate a “principal executive office”. For the purposes of this report, we have designated our Bozeman, MT office as our primary executive office, as that is where our CEO and CFO are based. “
Snowflake will always have a big operation in Silicon Valley, and has even undergone a recent massive overhaul of its San Mateo office to prepare for the eventual employee return.
“Although San Mateo continues to remain an important place for us, we don’t have a single office that is at the center of Snowflake’s operations,” a spokesperson said in an email.
The company’s decision to pull its California headquarters follows a trend that began amid the pandemic last year.
Palantir moved to Colorado. Oracle and Hewlett Packard Enterprise have left for Texas. Many companies have consolidated their offices and pulled out of Bay Area leases, giving their employees the ability to work wherever they are. Businesses have decamped for a combination of reasons, including California’s inflated cost of living, high taxes, and an environment increasingly seen as hostile to businesses.
Snowflake, which has around 2,500 employees, has been moving towards remote work for months. CEO Frank Slootman told CNBC in January that after the Covid-19 outbreak, it became clear that the old way of working was not going to return.
The pandemic turned out to be “almost like a wake-up call that just opens our eyes to the opportunity,” Slootman said at the time. “It will really reduce the real estate footprint of companies.”
The address Snowflake lists as its office in Bozeman, a town of less than 50,000, is downtown, near a post office, bowling alley and cafe, according to Google Maps.
Slootman has spent a lot of time and money in Montana in recent years.
While CEO of ServiceNow before joining Snowflake, Slootman paid the maximum amount allowed to Republican Greg Gianforte, who was Montana’s representative in the United States House until this year, according to Federal Election Commission records. Gianforte is now the state governor.
At the end of 2020, Slootman applied for a 20-year aviation ground lease at Twin Bridges Airport in Montana starting last October, according to minutes of meetings for the Madison County Airport Council.
– CNBC’s Jordan Novet contributed to this report
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