Snowflake Inc. ($SNOW) Earnings (Q4 FY22)

 Snowflake Inc. ($SNOW) Earnings and Opinion:


Snowflake Inc. ($SNOW) is a company in the Technology sector and operates in the Software-Application industry. They provide a cloud-based data platform in the United States and Internationally. Its platform is very innovative and can be used by various organizations of different sizes in different industries. Snowflake Inc. was incorporated in 2012 and is currently headquartered in Bozeman, Montana. The stock was first publicly traded on September 16, 2020.


Snowflake Inc. EPS and Revenue Q4 FY22:

  • EPS of -$0.43 missing expectations of $0.03
  • Revenue of $383.8M beating expectations of $371.9M
  • EPS was up 38.57% (YOY) and Revenue was up 101.49% (YOY)
Snowflake Inc. EPS and Revenue FY22:
  • EPS of -$2.26
  • Revenue of $1.2B 
  • EPS was up 40.68% and Revenue was up 105.95%
Snowflake Inc. FY23 Guidance:
  • Estimated Revenue of $1.88B-$1.9B 
  • Expected YOY growth of Revenue is 65%-67%
Opinion:
Snowflake Inc. took a tumble after reporting these earnings after todays bell. It is currently down just a tick over 22% at this hour. Investors took this earnings report to the heart, but it wasn't just about the earnings reported. The main reason why the stock is tumbling after hours, is the fact that the guidance put out by management shows slowing revenue growth. Revenue growth has been a hot topic with a lot of these companies in the Technology sector. We have seen this with companies like Meta ($FB) and Shopify ($SHOP). The slowing revenue shuns investors away because they think it is a sign of the company slowing down. As a long term investor, I see these as opportunities to attain positions in these high quality companies. Snowflake Inc. has had revenue growth above 100% for the past couple of fiscal years, so for it to drop below that mark in the guidance section makes sense to why investors got a little skeptical of this company. This company has also yet to become profitable, so as an investor that is always a risk. I do like the $1.2B in revenue, that is the first time in a fiscal year that they have hit that mark. EPS also increased since the past fiscal year, so that is another bright spot in this company. Personally, I really like the innovation and business model this company has. I do not currently hold a position in this company, but have been following them closely for the past 4 months. I truly think this is another opportunity to buy a company that shed a little bit, just on the fact of slowing revenue growth. If you are a long-term investor and want a foundational stock for your portfolio, I think this is a great stock to add.


*Information was attained from Yahoo Finance, Snowflake, and Nasdaq
*Estimates were attained from Zacks


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