- Snowflake’s 1Q Revenue totalled $828.7 million, indicating a year-on-year increase of 33%, which exceeded the estimated revenue of $786.3 million.
- Their product revenue added up to $789.6 million, marking a 34% increase from the previous year, and surpassing the estimated figure of $749 million.
- Professional services and other revenue were recorded at $39.1 million, a 17% year-on-year increase, higher than the estimate of $36.5 million.
- The reported loss per share was 95c, which contrasts the loss per share of 70c in the previous year.
- Snowflake’s adjusted gross margin stands at 74%, showing a slight increase from 73% in the previous year, and outdoing the estimated 73.3%.
- The adjusted diluted EPS was 14c, compared to 15c from the previous year. However, it came up short of the estimated 19c.
- The company holds a mixed stock rating, with 32 buys, 12 holds and 2 sells.
Snowflake on Smartkarma
Independent analysts on Smartkarma, specifically Baptista Research, are bullish on Snowflake Inc.’s future prospects. In their research report titled “Snowflake Inc: Can Its Rapid Development & Adoption Of AI Products Grow Its Market Share? – Major Drivers,” Baptista Research highlights Snowflake’s strong annual performance for fiscal 2024. The company reported a 38% YoY product revenue growth, reaching $2.67 billion, indicating a robust growth trajectory. Additionally, Snowflake’s expansion of non-GAAP product gross margins to 77.8% and non-GAAP adjusted free cash flow of $810 million demonstrate the company’s strong fiscal health. With exceptional bookings in Q4 and 14 new Global 2000 customers, analysts see strong customer adoption and trust in Snowflake’s offerings.
In another report by Baptista Research titled “Snowflake Inc.: Will The Acquisition Of Ponder Become A Game Changer? – Major Drivers,” analysts acknowledge Snowflake Inc.’s ability to surpass analyst expectations in revenue and earnings. In Q3, the company achieved an impressive 34% year-over-year growth in product revenue, reaching $698 million. Snowflake’s unveiling of innovative technologies, including Snowflake Cortex for AI and machine learning applications on its platform, further reinforces analysts’ positive sentiment towards the company’s future performance. Baptista Research‘s bullish outlook on Snowflake indicates confidence in the company’s strategic initiatives and growth potential in the data analytics market.
A look at Snowflake Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
According to Smartkarma Smart Scores, Snowflake shows a promising long-term outlook. With a strong Resilience score of 5, the company is well-positioned to withstand challenges and market volatility. Its Growth factor, scoring a 3, suggests Snowflake has potential for expansion and development in the future. Momentum, also rated at 3, indicates a positive trend in performance. However, the Value score is lower at 2, reflecting some considerations regarding the company’s valuation. Snowflake Inc. specializes in software solutions, including database architecture and data warehouses, catering to a global clientele.
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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