Core Insights - Snowflake's stock is down 11% in 2024 but surged over 30% after reporting strong Q3 FY 2025 results [1][2] - The company is experiencing growth in its data cloud product, which is crucial for AI model training [2] - Snowflake's partnership with Anthropic to integrate its Claude model is expected to enhance revenue potential from its large customer base [3] Financial Performance - In Q3 FY 2025, Snowflake's product revenue increased by 29% year over year to $900 million [4] - Remaining performance obligations (RPO) rose 55% to $5.7 billion, indicating sustained growth potential [4] - Management expects product revenue growth of 23% in Q4, reflecting a trend of slowing growth as the company matures [6] Profitability Concerns - Snowflake reported an operating loss of $366 million in the quarter, with a 39% loss margin, which has remained unchanged over the years [8] - The lack of focus on profitability amidst slowing growth raises concerns about management's priorities [9] - The company is trading at a premium valuation of 17 times sales, which may prompt investors to reconsider their positions [10]

Stock Repurchases and Financing Activities - Company repurchased 14.8 million shares of common stock for $1.9 billion at a weighted-average price of $130.87 per share during the nine months ended October 31, 2024[328] - Net cash used in financing activities was $106.4 million for the nine months ended October 31, 2024, driven by $1.9 billion in stock repurchases and $359.6 million in taxes paid for equity awards[339] - Board authorized an additional $2.5 billion stock repurchase program in August 2024, extending the expiration date to March 2027[328] Cash Flow and Operating Activities - Net cash provided by operating activities increased to $527.0 million for the nine months ended October 31, 2024, up from $503.5 million in the same period in 2023[336] - Company expects to generate positive net cash flows from operating activities for fiscal 2025[336] Investments and Market Risks - Strategic investments increased to $296.2 million as of October 31, 2024, up from $234.4 million as of January 31, 2024, driven by growth in non-marketable equity securities under the Measurement Alternative from $190.2 million to $280.6 million[353] - Strategic investments are subject to market risks, including volatility and potential impairment, which could impact financial results[352] - The company anticipates additional volatility in operations due to market price changes and impairments related to strategic investments[354] - The company's strategic investments are subject to market-related risks, including volatility and potential impairment, which could impact financial results[352] Cash, Cash Equivalents, and Investments - Company had $5.0 billion in cash, cash equivalents, and investments as of October 31, 2024, with a hypothetical 100 basis point interest rate change impacting market value by $19.1 million[345] - The company holds $5.0 billion in cash, cash equivalents, and investments as of October 31, 2024, with a hypothetical 100 basis point interest rate change impacting market value by $19.1 million[345] Debt Issuance and Hedging - Company issued $2.3 billion in Notes in September 2024 and entered into Capped Calls for $195.5 million to reduce potential dilution[347] - In September 2024, the company issued $2.3 billion in Notes, with no regular interest accrual, and entered into Capped Calls costing $195.5 million to mitigate potential dilution[347] - Foreign currency forward contracts were used to hedge against exchange rate risks, with all contracts maturing within twelve months[349] - Foreign currency exchange risk is managed through forward contracts, with a 10% change in the U.S. dollar value not expected to materially impact operating results[350] Investing Activities - Net cash used in investing activities was $34.2 million for the nine months ended October 31, 2024, primarily due to $75.6 million spent on property, equipment, and business combinations[337] Internal Controls and Reporting - Disclosure controls and procedures were deemed effective as of October 31, 2024, ensuring timely and accurate reporting[356] - No material changes in internal control over financial reporting were identified during the quarter ended October 31, 2024[357]

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About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup New ...

Snowflake (SNOW) shares jumped 32.8% following its impressive third-quarter fiscal 2025 results on Nov. 20. SNOW reported non-GAAP earnings of 20 cents per share, beating the Zacks Consensus Estimate by 33.33% and reflecting strong operational performance and customer-base expansion. SNOW's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, the average earnings surprise being 35.39%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. SN ...

After struggling since the spring, Snowflake (SNOW 2.38%) stock has surged much higher following the release of earnings for its fiscal 2025's third quarter (ended Oct. 31). After an abrupt leadership change and questions about how well it could compete amid the rise of artificial intelligence (AI), the company is again winning over customers and investors.Amid the renewed confidence in Snowflake stock, investors have gone from questioning whether it is a buy to asking whether it is too late to buy into thi ...

Sometimes, even the best investors in the world struggle to time the market.Warren Buffett is the CEO of Berkshire Hathaway (BRK.A 0.30%) (BRK.B 0.18%). Over his 59-year tenure, Berkshire stock has delivered a compound annual return of 19.8%, almost twice the average annual return in the S&P 500 over the same period. Therefore, it's no surprise that Wall Street watches Buffett's every move. He is on a selling spree this year, trimming several long-standing holdings in Berkshire's portfolio. Snowflake (SNOW ...

When I wrote about Snowflake (NYSE: SNOW ) in early March this year, I discussed why the stock had dropped from its highs after reporting its fourth-quarter fiscal 2024 earnings on February 28, 2024. Those reasons included disappointing earnings resultsI have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, ...

Snowflake Inc. (NYSE: SNOW ) reported a mixed Q3 ’25 earnings result on November 20, 2024 , as sales growth moderated to 28% with the adjusted operating margin declining to 6.25%, down from 9.80% in Q3 ’24. Despite theMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Information Technology, ...

Key TakeawaysWedbush upgraded Snowflake as the analysts predicted that the artificial intelligence software era is here.Wedbush said Snowflake was in the "sweet spot" to benefit from AI product demand.The analysts added that it was time for the broader software sector to "get in on the AI party." Shares of Snowflake (SNOW) gained about 3% Monday afternoon as Wedbush upgraded the stock, saying the cloud software provider is in the "sweet spot" to benefit from the booming demand for artificial intelligence (A ...