- Snowflake’s revenue for the second quarter of 2024 was $868.8 million, a 29% increase year-over-year. The initial estimate was $850.7 million.
- Product revenue reached $829.3 million, up 30% year-over-year, surpassing the estimate of $812.6 million.
- Revenue from professional services and other sources was $39.6 million, a 17% increase year-over-year, compared to the estimate of $38.9 million.
- The loss per share for the quarter was 95 cents, compared to a loss of 69 cents per share the previous year.
- Adjusted gross margin for the quarter was 73%, slightly down from 74% the previous year, but above the estimated 72.7%.
- Adjusted diluted earnings per share (EPS) was 18 cents, compared to 22 cents the previous year, beating the estimate of 16 cents.
- CEO Sridhar Ramaswamy commented on the strong quarter, announcing that Snowflake is raising its product revenue guidance for the year.
- Analyst ratings include 32 buys, 11 holds, and 2 sells.
Snowflake on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely following Snowflake Inc., highlighting the company’s impressive financial performance and strategic vision. In a report titled “Snowflake Inc.: Broadened Scope and Usability of Products & Other Major Drivers,” CEO Sridhar Ramaswamy’s emphasis on customer learning, go-to-market execution, and product innovation has been noted. Snowflake’s Q1 results for fiscal year 2025 showcased a robust business, with a 34% YoY increase in product revenue to $790 million, demonstrating the company’s strength in the market.
Furthermore, Baptista Research‘s analysis titled “Snowflake Inc: Can Its Rapid Development & Adoption Of AI Products Grow Its Market Share? – Major Drivers” dives into Snowflake’s fiscal year 2024 performance, where the company achieved a 38% YoY growth in product revenue, reaching $2.67 billion. The report highlights Snowflake’s strong financial health, with impressive non-GAAP product gross margins and adjusted free cash flow figures. Notably, the company’s significant bookings in Q4, including new Global 2000 customers, reflect a growing customer base and confidence in Snowflake’s offerings.
A look at Snowflake Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Snowflake has a promising long-term outlook. With a strong resilience score of 5, the company is well-positioned to weather challenges and continue to thrive in the market. This indicates that Snowflake has the ability to adapt and endure in various market conditions. Furthermore, a growth score of 3 suggests that the company has potential for expansion and development in the future, indicating a positive trajectory for Snowflake.
Although Snowflake has lower scores in value and momentum, with scores of 2 and 2 respectively, the overall outlook remains optimistic due to the higher scores in resilience and growth. While the company may not be currently viewed as undervalued or experiencing high momentum, its ability to withstand challenges and drive growth are key factors that contribute to its positive long-term prospects.
Summary of Snowflake Inc.: Snowflake Inc. is a software solutions provider, specializing in database architecture, data warehouses, query optimization, and parallelization solutions. Serving a global customer base, Snowflake is positioned to continue its growth and resilience in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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