Data warehouse-as-a-service Snowflake (NYSE:SNOW) will be reporting results tomorrow after market hours. Here’s what you need to know.
Snowflake beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $986.8 million, up 27.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates. It added 38 enterprise customers paying more than $1 million annually to reach a total of 580.
Is Snowflake a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Snowflake’s revenue to grow 21.6% year on year to $1.01 billion, slowing from the 32.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snowflake has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Snowflake’s peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 23.2%, beating analysts’ expectations by 4.8%, and DigitalOcean reported revenues up 14.1%, topping estimates by 1%. Commvault Systems’s stock price was unchanged after the results, while DigitalOcean was down 12.7%.
Read our full analysis of Commvault Systems’s results here and DigitalOcean’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 23.7% on average over the last month. Snowflake is up 33.2% during the same time and is heading into earnings with an average analyst price target of $201.87 (compared to the current share price of $182.43).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.