Snowflake Inc. ($SNOW) Earnings (Q1 FY23)

 Snowflake Inc. ($SNOW) Earnings and Opinion:


Snowflake is a company in the Technology sector and operates in the Software-Application industry. The company provides a cloud-based data platform internationally. Snowflake was founded in 2012 and is currently headquartered in Bozeman, Montana. The company was first traded on the stock market in 2020.

Snowflake EPS and Revenue (Q1 FY23):

  • EPS of -$0.01 missing expectations of $0.00
  • Revenue of $422.37M beating expectations of $413.01M
Snowflake Q1 Highlights:
  • Revenue retention rate of 174%
  • Remaining performance obligations of $2.6B
  • 6,322 total customers
  • Product revenue of $394.4M
  • Product revenue was up 84% Y/Y
Opinion:
Snowflake is currently moving way lower after reporting earnings after the market closed today. The company, like NVIDIA, put up some really solid numbers this quarter. However, it was the outlook that set them back and caused the stock to tumble after-hours. They missed expectations on EPS, but were able to surpass expectations on revenue. The company looks like it is continuing its growth track, with some solid numbers coming out for product revenue. They also had a nice revenue retention rate. The customer count also moved higher, which is a solid win for the company. Snowflake is another tech stock that has been brutally beat up since this bear market has come upon us. The company seems to be one of the growing SaaS companies in the sector and is showing no real signs of slowing down. The stock is down over 62% in the past 6 months, and has been hovering around 52-week lows. As far as valuations go, Future P/E ratios are in the triple digits, due to the fact that the company is in between profitability and loss right now. For P/S ratio, Snowflake is trading at 34.33, which is extremely high. These valuations are extremely high, but it makes sense due to the high growth they have encountered and the takeoff during the pandemic. The ROA and ROE metrics are both currently negative. However, the company has a lot of cash on hand, compared to practically no debt. This is huge for a company that is on the verge of becoming fully profitable. Personally, I see this as a really strong company trading at a discounted price. Snowflake has a lot of future potential with it and can see some upside, especially due to the fact that the stock has been dwindling over the past 6 months.


*Information from Snowflake, Yahoo Finance, Google, and CMLVIZ

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