Snowflake Inc. ($SNOW) Earnings (Q2 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 in the United States and internationally. Snowflake was incorporated in 2012 and is currently headquartered in Bozeman, Montana. The company made its debut on the stock market in September of 2020.

Snowflake Earnings and Results:

  • Revenues of $497M beating expectations of $468M
  • Operating Income of $18M beating expectations of -$9M
  • Billings of $508M missing expectations of $535M
  • Guidance beat estimates for both Q3 and FY23
Opinion:
Snowflake is currently soaring after reporting earnings after the market closed this afternoon. They almost had an immaculate quarter, but billings and deferred revenue held them back. This is being overlooked by investors, as they are celebrating the fact that the company was able to beat expectations by a good amount. I am pleased with this report and momentum seems to be with them right now. Guidance was very strong, and shows some solid optimism for investors. They are on the edge of profitability, so after these results and some momentum, they should be able to achieve this in a relevant amount of time. As far as valuation goes, the P/S ratio is at 38.15 which is was above industry average. Revenue growth is at solid rates, and the current ratio sits good. Cash heavily outweighs debt, so this is a good position for the company to be in. I have had my eye on this stock for some time now. Snowflake is a solid company with a really solid business model. The potential is also really strong for them as well. I like where the financials stand, and also where this earnings report leads them. I think it is overvalued right now, but that shouldn't matter. I am long Snowflake and think they should deserve a spot in your portfolio.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, Motley Fool

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