Snowflake share price skyrocketed after pricing initial public offerings around $120. Its business model of running the data warehouse software company has gained retail and prominent investors’ confidence.

This marks the largest 2020 IPO, with a market valuation of $30 billion. Warren Buffett’s investments in the data warehouse company added to investor’s sentiments.

“Berkshire Hathaway Inc. has agreed to purchase 4,042,043 shares of our Class A common stock from one of our stockholders in a secondary transaction at a price per share equal to the initial public offering price that will close immediately subsequent to the closing of this offering,” Snowflake said.

Consequently, shares of snowflake soared more than 112% on the first day of trading, stretching its market value above $66 billion. Its market value is now five times larger than $12 billion in February. Snowflake share price ended the first trading session around $253.

Snowflake runs its business model on customer credits. The company only cashes in the credit when a customer uses resources. There are four different product categories including Standard, Enterprise, Virtual Private, and Business Critical. The customers are eligible to buy these services either on-demand or through pre-paid capacity.

The company has been generating robust revenue growth over the past couple of quarters. Its fiscal 2019 revenue came in at $264.7M, representing a growth of 173% year over year. Its revenue growth accelerated momentum in fiscal 2020. Snowflake’s first-half revenue stood around $242 million.

However, the company is still struggling to turn revenue growth into profitability. It’s first-half loss stood around $177 million.

Snowflake claims that the addressable market for its Cloud Data Platform is at $81 billion. “The combined market for Analytics Data Management and Integration Platforms and Business Intelligence and Analytics Tools will be valued at $56B at year’s end and $84B by the end of 2023,” the company said.