Core Insights - Snowflake shares surged 20% in after-hours trading following better-than-expected earnings and an increased revenue outlook for fiscal 2025 [2][3] - The company now anticipates product revenue of $3.43 billion for fiscal 2025, up from a previous forecast of $3.36 billion, driven by software demand and public sector opportunities [2] - Snowflake has entered a multiyear partnership with AI startup Anthropic and plans to acquire Datavolo, an open data integration platform [3] Technical Analysis - Between September and October, Snowflake shares formed a double bottom pattern, indicating a bullish reversal [5] - The stock is positioned for further gains after successfully retesting the neckline of the double bottom pattern ahead of earnings [5] - Key overhead price levels to monitor include $145, $165, $182, and a psychological level of $200, with significant support expected around $125 [7][9][11] Price Levels - The first key level to watch is around $145, just above the 200-day moving average, with potential buying interest during intraday dips [7] - A follow-through buying could push shares to $165, where resistance may occur due to previous swing highs [8] - The next level to observe is $182, with potential selling opportunities for investors who bought at lower prices [8] - A bullish scenario could see a retest of the $200 level, approximately 55% above the recent closing price [9] Support Levels - During pullbacks, the $125 level is crucial as it may serve as significant support from the double bottom pattern's neckline [11]

Financial Data and Key Metrics Changes - Product revenue for Q3 was $900 million, representing a strong 29% year-on-year growth [11] - Remaining performance obligations totaled $5.7 billion, with year-over-year growth accelerating to 55% [12] - Non-GAAP operating margin improved to 6%, with non-GAAP product gross margin stabilizing at 76% [30] Business Line Data and Key Metrics Changes - Snowpark is on track to represent approximately 3% of product revenue, contributing positively to growth [28] - The core data warehousing business showed strong performance, with new product initiatives beginning to contribute to growth [28] Market Data and Key Metrics Changes - Net revenue retention rates stabilized at 127% [28] - The company signed $350 million-plus total contract value deals, indicating strong demand across various sectors [29] Company Strategy and Development Direction - The company is focused on operational efficiency and cost management while aggressively investing in innovation and go-to-market strategies [12][13] - The intended acquisition of Datavolo aims to enhance the company's capabilities in handling unstructured data and improve data engineering workflows [24][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth through product innovation and customer engagement, particularly in AI and data engineering [20][24] - The company anticipates continued strong performance in Q4, with expectations for product revenue between $906 million and $911 million, representing 23% year-over-year growth [33] Other Important Information - The company has $5 billion in cash and investments, with $2 billion remaining for stock repurchases and potential acquisitions [32][31] - The company is seeing strong momentum in international markets, particularly in Europe and Asia Pacific [78] Q&A Session Questions and Answers Question: What contributed to the strength in consumption revenue and bookings? - Management noted broad-based demand across customers, with specific contributions from Iceberg and Snowpark [39] Question: How is the company addressing competitive displacements? - Management highlighted ease of use and faster time to value as key factors driving competitive displacements [41] Question: What is the visibility on the ramp of new AI products like Cortex? - Management indicated that Cortex is in early stages but showing promise, with expectations for significant future contributions [48] Question: How does the company view the stability of the core business? - Management confirmed that the core business remains strong, with a stable net revenue retention rate and positive outlook for next year [59] Question: Can you elaborate on the acquisition of Datavolo? - The acquisition is seen as a strategic move to enhance data engineering capabilities and support unstructured data processing [64] Question: How is the company positioned in international markets? - Management expressed confidence in growth opportunities in Europe and Asia Pacific, with strong performance noted in Japan and Australia [78]

Core Insights - Snowflake Inc. reported revenue of $942.09 million for the quarter ended October 2024, marking a year-over-year increase of 28.3% [1] - The company's EPS for the same period was $0.20, down from $0.25 a year ago, but exceeded the consensus estimate of $0.15, resulting in an EPS surprise of +33.33% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $898.77 million, yielding a surprise of +4.82% [1] Financial Metrics - Remaining performance obligations stood at $5.70 billion, exceeding the four-analyst average estimate of $5.35 billion [3] - The number of customers with trailing 12-month product revenue greater than $1 million was 542, matching the average estimate based on two analysts [3] - Product revenue was reported at $900.28 million, surpassing the 10-analyst average estimate of $853.19 million, reflecting a year-over-year change of +28.9% [3] - Revenue from professional services and other sources was $41.81 million, slightly above the estimated $40.45 million, representing a +17.1% change year-over-year [3] - Non-GAAP Product Gross Profit was $686.90 million, exceeding the estimated $637.69 million [3] - GAAP Product gross profit was reported at $636.66 million, compared to the average estimate of $595.25 million [3] - GAAP Professional Services and Other Revenue Gross Profit (Loss) was -$15.46 million, worse than the average estimate of -$12.39 million [3] Stock Performance - Over the past month, shares of Snowflake have returned +12.8%, outperforming the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Snowflake Inc. (SNOW) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.18, delivering a surprise of 20%.Over the last four quarters, the company has ...

| --- | --- | |---------------------------------|-------| | | | | SNOWFLAKE INVESTOR PRESENTATION | | | Third Quarter Fiscal 2025 | | Statement Regarding Use of Non-GAAP Financial Measures 2 This presentation includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and not as a substitute for, or superior to, financial measures calculated in accorda ...

[Q3 FY2025 Financial and Operational Overview](index=1&type=section&id=Q3%20FY2025%20Financial%20and%20Operational%20Overview) This section summarizes Snowflake's third quarter fiscal 2025 financial and operational performance, including key highlights, detailed results, future guidance, and corporate developments [Third Quarter Fiscal 2025 Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Highlights) Snowflake reported strong growth in its third quarter of fiscal 2025, with product revenue increasing 29% year-over-year to $900.3 million, demonstrating robust customer expansion and commitment Q3 FY2025 Key Performance Indicators | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Product Revenue | $900.3 million | 29% | | Total Revenue | $942.1 million | 28% | | Remaining Performance Obligations (RPO) | $5.7 billion | 55% | | Net Revenue Retention Rate | 127% | N/A | | Customers with >$1M TTM Product Revenue | 542 | 25% | | Forbes Global 2000 Customers | 754 | 8% | - CEO Sridhar Ramaswamy attributed the strong results to the company's focus on product cohesion and ease of use, which he stated is leading to new customer acquisitions and competitive displacements[3](index=3&type=chunk) [Third Quarter Fiscal 2025 Financial Performance](index=2&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) In Q3 FY2025, Snowflake reported a GAAP operating loss of $365.5 million, while achieving a non-GAAP operating income of $58.9 million, primarily due to adjustments for stock-based compensation and other non-cash items Q3 FY2025 Financial Results Summary (in millions) | Metric | GAAP Result (in millions) | GAAP Margin | Non-GAAP Result (in millions) | Non-GAAP Margin | | :--- | :--- | :--- | :--- | :--- | | Product Revenue | $900.3 | N/A | N/A | N/A | | Product Gross Profit | $636.7 | 71% | $686.9 | 76% | | Operating Income (Loss) | ($365.5) | (39%) | $58.9 | 6% | | Net Cash from Operating Activities | $101.7 | 11% | N/A | N/A | | Free Cash Flow | N/A | N/A | $78.2 | 8% | | Adjusted Free Cash Flow | N/A | N/A | $86.8 | 9% | [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Snowflake provided financial guidance for both the upcoming fourth quarter and the full fiscal year 2025, projecting continued product revenue growth on both a GAAP and non-GAAP basis [Fourth Quarter Fiscal 2025 Guidance](index=3&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Guidance) Snowflake projects fourth quarter fiscal 2025 product revenue between $906 million and $911 million, representing 23% year-over-year growth, with a non-GAAP operating margin of 4% Q4 FY2025 Guidance | Metric | Guidance (in millions) | | :--- | :--- | | Product Revenue | $906 - $911 | | Product Revenue YoY Growth | 23% | | Non-GAAP Operating Margin | 4% | | Non-GAAP Diluted Weighted-Average Shares | 372 | [Full-Year Fiscal 2025 Guidance](index=3&type=section&id=Full-Year%20Fiscal%202025%20Guidance) For the full fiscal year 2025, Snowflake anticipates product revenue of $3.43 billion, a 29% year-over-year increase, alongside a non-GAAP operating margin of 5% and an adjusted free cash flow margin of 26% Full-Year FY2025 Guidance | Metric | Guidance (in millions) | | :--- | :--- | | Product Revenue | $3,430 | | Product Revenue YoY Growth | 29% | | Non-GAAP Product Gross Margin | 76% | | Non-GAAP Operating Margin | 5% | | Non-GAAP Adjusted Free Cash Flow Margin | 26% | | Non-GAAP Diluted Weighted-Average Shares | 364 | - The full-year fiscal 2025 product revenue guidance is based on achieving the higher end of the fourth-quarter guidance range[10](index=10&type=chunk) [Corporate Developments](index=4&type=section&id=Corporate%20Developments) In September 2024, Snowflake completed a significant capital raise by issuing $2.3 billion in convertible senior notes, partially used for capped call transactions and common stock repurchases - Completed a private offering of **$1.15 billion** of 0% convertible senior notes due 2027 and **$1.15 billion** due 2029, with total net proceeds of approximately **$2.27 billion**[13](index=13&type=chunk) - A portion of the proceeds was used to pay **$195.5 million** for capped call transactions and to repurchase **$399.6 million** of common stock at **$112.50 per share**[14](index=14&type=chunk) [Detailed Financial Statements and Reconciliations](index=9&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) This section presents Snowflake's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows, along with detailed GAAP to non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter ending October 31, 2024, Snowflake's revenue increased to $942.1 million, but the GAAP operating loss widened to $365.5 million, leading to a net loss of $324.3 million Q3 Statement of Operations Summary (in millions) | Line Item | Three Months Ended Oct 31, 2024 (in millions) | Three Months Ended Oct 31, 2023 (in millions) | | :--- | :--- | :--- | | Revenue | $942.1 | $734.2 | | Gross Profit | $621.2 | $505.2 | | Total Operating Expenses | $986.7 | $765.8 | | Operating Loss | ($365.5) | ($260.6) | | Net Loss Attributable to Snowflake Inc. | ($324.3) | ($214.3) | | Net Loss Per Share | ($0.98) | ($0.65) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of October 31, 2024, Snowflake's balance sheet showed total assets of $8.20 billion, with a significant addition of $2.27 billion in convertible senior notes and a decrease in stockholders' equity Balance Sheet Summary (in billions) | Line Item | October 31, 2024 (in billions) | January 31, 2024 (in billions) | | :--- | :--- | :--- | | Cash, cash equivalents, and investments | $4.95 | $4.76 | | Total Assets | $8.20 | $8.22 | | Convertible senior notes, net | $2.27 | $0 | | Total Liabilities | $5.27 | $3.03 | | Total Snowflake Inc. stockholders' equity | $2.93 | $5.18 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended October 31, 2024, Snowflake generated $527.0 million in net cash from operating activities, with financing activities reflecting convertible note issuance offset by stock repurchases Cash Flow Summary - Nine Months Ended Oct 31, 2024 (in millions) | Cash Flow Activity | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $527.0 | | Net cash used in investing activities | ($34.2) | | Net cash used in financing activities | ($106.4) | - Key financing activities for the nine-month period included **$2.3 billion** in proceeds from issuing convertible notes and **$1.93 billion** used for stock repurchases[42](index=42&type=chunk) [GAAP to Non-GAAP Reconciliations](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The reconciliation tables detail adjustments, primarily $381.4 million in stock-based compensation, that converted a GAAP operating loss of $365.5 million into a non-GAAP operating income of $58.9 million for Q3 Q3 FY2025 GAAP Operating Loss to Non-GAAP Operating Income (in millions) | Description | Amount (in millions) | | :--- | :--- | | **GAAP operating loss** | **($365.5)** | | Stock-based compensation-related charges | $381.4 | | Amortization of acquired intangibles | $24.0 | | Expenses associated with acquisitions | $1.3 | | Restructuring charges | $17.5 | | **Non-GAAP operating income** | **$58.9** | - Non-GAAP net income per diluted share was **$0.20** for the quarter, compared to a GAAP net loss per share of **($0.98)**[48](index=48&type=chunk) [Supplementary Information](index=4&type=section&id=Supplementary%20Information) This section provides additional context, including definitions of key business metrics, a statement on the use of non-GAAP financial measures, conference call details, and a cautionary note on forward-looking statements [Key Business Metrics Definitions](index=5&type=section&id=Key%20Business%20Metrics%20Definitions) Snowflake defines its key business metrics, including Product Revenue based on consumption, Net Revenue Retention Rate tracking customer cohort revenue, and Remaining Performance Obligations representing contracted future revenue - **Product Revenue:** Recognized based on consumption of compute, storage, and data transfer, distinguishing it from ratable subscription models[26](index=26&type=chunk) - **Net Revenue Retention Rate:** Calculated by dividing product revenue from a customer cohort in year two by their revenue in year one of a trailing two-year period[27](index=27&type=chunk) - **Remaining Performance Obligations (RPO):** Represents contracted future revenue not yet recognized, but is not necessarily indicative of future product revenue growth due to variable consumption timing[31](index=31&type=chunk) [Statement Regarding Use of Non-GAAP Financial Measures](index=4&type=section&id=Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP financial measures as supplemental information, excluding non-cash or non-recurring items like stock-based compensation, for internal decision-making - Non-GAAP measures are reported in addition to, not as a substitute for, GAAP measures[18](index=18&type=chunk) - Primary adjustments to calculate non-GAAP income include excluding stock-based compensation, amortization of acquired intangibles, acquisition expenses, and restructuring charges[19](index=19&type=chunk) - The company also reports Free Cash Flow and Adjusted Free Cash Flow as indicators of the strength of core business operations[22](index=22&type=chunk)[23](index=23&type=chunk) [Conference Call and Investor Information](index=4&type=section&id=Conference%20Call%20and%20Investor%20Information) Details for the Q3 FY2025 earnings conference call were provided, including the time, dial-in numbers, and webcast link, with a replay and investor presentation available online - The conference call was held at **3 p.m. Mountain Time** on **November 20, 2024**[15](index=15&type=chunk) - A live webcast, audio replay, and an additional investor presentation are available on the Snowflake Investor Relations website[16](index=16&type=chunk)[17](index=17&type=chunk) [Use of Forward-Looking Statements](index=6&type=section&id=Use%20of%20Forward-Looking%20Statements) This release includes a standard safe harbor statement cautioning that forward-looking statements are subject to significant risks and uncertainties detailed in SEC filings, and the company does not undertake to update them - The release contains forward-looking statements regarding performance, business strategy, and product adoption, including all statements under the "Financial Outlook" section[32](index=32&type=chunk) - Statements are subject to known and unknown risks, including general market conditions, customer consumption patterns, competition, and cybersecurity threats[33](index=33&type=chunk) - Investors are advised not to rely on forward-looking statements as predictions of future events and are directed to the company's SEC filings for further information on risks[34](index=34&type=chunk)[35](index=35&type=chunk)

Core Viewpoint - Snowflake Inc is set to report its third-quarter earnings, with Wall Street anticipating earnings per share of 15 cents and revenues of $896.99 million [1]. Stock Performance - The stock has declined by 22.48% over the past year and 31.66% year to date [2]. - As of the time of publication, Snowflake stock was trading around $129.76, down 0.37% [6]. Technical Analysis - Snowflake stock is currently in a strongly bullish trend, trading above its five, 20, and 50-day exponential moving averages, indicating buying pressure and potential for continued upward movement [3][4]. - The stock price is above its eight-day simple moving average of $127.70, 20-day SMA of $121.68, and 50-day SMA of $117.83, reinforcing bullish momentum [4]. - However, it is trading below its 200-day SMA of $142.36, which presents a bearish signal in the long term [5]. - The Moving Average Convergence Divergence (MACD) indicator stands at 3.26, supporting the bullish outlook [5]. - The Relative Strength Index (RSI) is at 61.61, indicating that the stock is nearing overbought territory but still has room for upward movement [5]. Analyst Ratings - The consensus analyst rating for Snowflake stock is currently a Buy, with a price target of $171.97, suggesting a potential upside of 31.77% [6]. - Recent analyst ratings from Rosenblatt, Citigroup, and Keybanc have set a price target of $171 for Snowflake stock [6].

Snowflake (SNOW 2.21%) went public in late 2020, and its shares peaked during the tech sector's pandemic-era surge in late 2021. The stock has since declined by about 68% from that record high, but Wall Street sees a turnaround on the horizon. Among the 45 analysts who follow the company, the median price target is $169 per share -- 33% higher than its current share price of $127.Leaning into demand for AI productsSnowflake's cloud-based platform lets customers integrate, store, transform, and make sense of ...

As the software industry nears a crossroads, one industry analyst expressed confidence in a few big names ahead of third-quarter earnings season. The Software Analyst: D.A. Davidson analyst Gil Luria reiterated Buy ratings for Palo Alto Networks Inc PANW, Couchbase Inc BASE and Snowflake Inc SNOW in a note published Monday. Cybersecurity and Infrastructure Takeaways: For Palo Alto Networks, Luria anticipates strong sales performance aided by improving firewall demand and the aftermath of the Crowdstrike Hol ...

Core Viewpoint - Snowflake (SNOW) is expected to report its third-quarter fiscal 2025 results on November 20, with revenue estimates indicating a 22.42% increase year-over-year, while earnings per share are projected to decrease by 40% compared to the previous year [1][5]. Financial Performance - The Zacks Consensus Estimate for revenues is $898.77 million, reflecting a significant year-over-year growth [1]. - SNOW's earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 43.73% [2]. Market Conditions - SNOW faces challenging macroeconomic conditions, including persistent inflation affecting customer spending, increased GPU-related costs due to investments in AI, and competitive pricing pressure from rivals like Databricks [5]. Growth Drivers - Despite challenges, SNOW's top-line growth is supported by a strong portfolio of new capabilities, including Marketplace Listing Auto-Fulfillment & Monetization, account replication & failover, and Snowpipe Streaming [6][12]. - The company has introduced several innovations, such as Iceberg and Cortex LLM-powered functions, which are expected to enhance long-term prospects through increased demand and competitive differentiation [13]. Strategic Partnerships - SNOW benefits from an expanding partner base, including major companies like Amazon, Microsoft, and NVIDIA, which enhances its ability to build customized AI data applications [17][18]. - Recent collaborations with Microsoft aim to improve interoperability between Snowflake and Microsoft Fabric OneLake, leveraging open standards for analytical storage formats [19][20]. Client Base and Adoption - SNOW's growing client base includes industry leaders such as Disney, Capital One, and Pfizer, showcasing its increasing adoption across various sectors [21]. Stock Performance - SNOW shares have underperformed, declining 36.6% compared to the Zacks Computer & Technology sector's return of 25.7% and the S&P 500's 23.5% [7]. - The stock is currently trading at a premium, with a forward 12-month price-to-sales ratio of 10.16X, compared to the sector's 6.13X, indicating a stretched valuation [10].