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Q3 Data Storage Earnings Review: First Prize Goes to Snowflake (NYSE:SNOW)


Adam Hejl /
2022/01/13 7:01 am EST
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Wrapping up Q3 earnings, we look at the numbers and key takeaways for the data storage stocks, including Snowflake (NYSE:SNOW) and its peers.

Data is the lifeblood of the internet and software in general, and the amount of data created is growing at an accelerating pace. Likewise, the importance of storing the data in scalable and efficient formats continues to rise, especially as the diversity of the data and associated use cases expand from analyzing simple, structured data to high-scale processing of unstructured data, images, audio and video.

The 5 data storage stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 4.64%, while on average next quarter revenue guidance was 2.13% above consensus. The whole tech sector has been facing a sell-off since late last year and while some of the data storage stocks have fared somewhat better they have not been spared, with share price declining 10.9% since earnings, on average.

Best Q3: Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Snowflake reported revenues of $334.4 million, up 10% year on year, beating analyst expectations by 9.24%. It was an impressive quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.

“Snowflake saw momentum accelerate in Q3, with product revenue growing 110% year-on-year to $312.5 million. Continued international expansion during the quarter resulted in product revenue from the EMEA and APJ regions up 174% and 219% year-on-year, respectively,” said Frank Slootman, Chairman and CEO, Snowflake.

Snowflake Total Revenue

Snowflake pulled off the fastest revenue growth of the whole group. The company added 32 enterprise customers paying more than $1m annually to a total of 148. The stock is down 0.81% since the results and currently trades at $308.01.

We think Snowflake is a good business, but is it a buy today? Read our full report here, it's free.

MongoDB (NASDAQ:MDB)

Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.

MongoDB reported revenues of $226.8 million, up 50.4% year on year, beating analyst expectations by 10.5%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

MongoDB Total Revenue

MongoDB delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 75 enterprise customers paying more than $100,000 annually to a total of 1,201. The stock is up 0.84% since the results and currently trades at $432.

Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.

Weakest Q3: Commvault (NASDAQ:CVLT)

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ:CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.

Commvault reported revenues of $177.8 million, up 3.91% year on year, missing analyst expectations by 3.75%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.

Commvault had the weakest performance against analyst estimates and slowest revenue growth in the group. The company lost 22 enterprise customers paying more than $100,000 annually and ended up with a total of 163. The stock is down 8.43% since the results and currently trades at $69.31.

Read our full analysis of Commvault's results here.

CouchBase (NASDAQ:BASE)

Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database as a service platform that allows enterprises to store large volumes of semi-structured data.

CouchBase reported revenues of $30.8 million, up 19.9% year on year, beating analyst expectations by 4.76%. It was a decent quarter for the company, with a solid beat of analyst estimates.

The stock is down 23.2% since the results and currently trades at $22.64.

Read our full, actionable report on CouchBase here, it's free.

DigitalOcean (NYSE:DOCN)

Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.

DigitalOcean reported revenues of $111.4 million, up 37.2% year on year, beating analyst expectations by 2.38%. It was a decent quarter for the company, with a significant improvement in gross margin but decelerating customer growth.

DigitalOcean had the weakest full year guidance update among the peers. The company lost 4000 customers and ended up with a total of 598,000. The stock is down 22.8% since the results and currently trades at $72.99.

Read our full, actionable report on DigitalOcean here, it's free.

The author has no position in any of the stocks mentioned