- Snowflake’s 4th quarter revenue was $774.7 million, a 32% increase year over year, surpassing the estimated $760.4 million.
- The product revenue was $738.1 million, up by 33% from the previous year, beating the estimate of $723.3 million.
- Professional services and other revenue reached $36.6 million, a 8.7% increase year over year, though it was slightly lower than the estimated $37.6 million.
- The company reported a loss per share of 51 cents, an improvement from a loss of 64 cents per share in the previous year.
- The adjusted gross margin was 75%, up from 71% in the previous year, and higher than the estimated 72.7%.
- Adjusted diluted earnings per share were 35 cents, more than double the 14 cents from the previous year, and beating the estimate of 18 cents.
- The company’s stock is currently rated as a buy by 27 analysts, a hold by 16 analysts, and a sell by 2 analysts.
Snowflake on Smartkarma
Analysts on Smartkarma, an independent investment research network, have been closely following the coverage of Snowflake, a cloud-based data warehousing company. According to Baptista Research, Snowflake Inc. managed to exceed analyst expectations in terms of revenue and earnings in Q3. With an impressive 34% year-over-year growth in product revenue, reaching $698 million, Snowflake’s acquisition of Ponder is being viewed as a potential game changer for the company. The addition of innovative technologies like Snowflake Cortex, which allows for the application of AI and machine learning on the Snowflake platform, has also garnered positive attention from analysts.
Another report from Baptista Research highlights the unassailable strength of Snowflake’s multi-cloud data warehousing strategy. In the last quarter, Snowflake delivered a solid result and managed to beat expectations on all fronts. The company has observed encouraging signs of stabilization, with new bookings surpassing initial projections. Analysts attribute this to Snowflake’s strong developer support, expansion of application providers, and successful events like the Snowflake Summit, which reflect a growing ecosystem. With a positive momentum and a strong ecosystem, Snowflake’s multi-cloud data warehousing strategy is seen as a major driver for the company’s success.
A look at Snowflake Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Snowflake Inc. is a software company that offers solutions for managing and analyzing data. Based on the Smartkarma Smart Scores, Snowflake has a mixed long-term outlook. It scores a 2 out of 5 for value, indicating that it may not be the most cost-effective option for investors. However, it scores a 5 out of 5 for both resilience and momentum, suggesting that it is a stable and growing company. Additionally, it scores a 3 out of 5 for growth, indicating potential for future expansion. Unfortunately, Snowflake scores a 1 out of 5 for dividends, meaning that it may not provide much return for investors in the form of regular payments.
Despite its lower score for value and dividends, Snowflake has a strong overall outlook, with high scores for resilience and momentum. This suggests that the company is well-positioned to weather any challenges and continue to grow in the long-term. With its focus on providing software solutions for managing and analyzing data, Snowflake serves customers worldwide and has the potential for further growth. Investors should consider these factors when making decisions about investing in Snowflake.
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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