As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today we are looking at the data storage stocks, starting with Snowflake (NYSE:SNOW).
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 mixed Q1; on average, revenues beat analyst consensus estimates by 3.1%, while on average next quarter revenue guidance was 1.29% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but data storage stocks held their ground better than others, with the share prices up 11.8% since the previous earnings results, on average.
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 $623.6 million, up 47.6% year on year, beating analyst expectations by 2.4%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but a decline in net revenue retention rate.
“During Q1, Snowflake’s product revenue grew 50%, totaling $590 million. Non-GAAP adjusted free cash flow was $287 million for the quarter, up 58% year-over-year,” said Frank Slootman, Chairman and CEO, Snowflake.
Snowflake achieved the fastest revenue growth of the whole group. The company added 43 enterprise customers paying more than $1m annually to a total of 373. The stock is up 1.83% since the results and currently trades at $180.16.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $368.3 million, up 29% year on year, beating analyst expectations by 6.12%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and a solid beat of analyst estimates.
MongoDB pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 110 enterprise customers paying more than $100,000 annually to a total of 1,761. The stock is up 27.3% since the results and currently trades at $374.2.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.
Slowest Q1: Commvault Systems (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 Systems reported revenues of $203.5 million, down 1.2% year on year, beating analyst expectations by 3.29%. It was a weaker quarter for the company, with decelerating growth in large customers.
Commvault Systems had the slowest revenue growth in the group. The company lost 19 enterprise customers paying more than $100,000 annually and ended up with a total of 187. The stock is up 20.7% since the results and currently trades at $70.4.
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 $165.1 million, up 29.7% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and net revenue retention rate. On a brighter note, revenue guidance for the next quarter came in roughly inline with analysts' estimates, and the full year revenue guidance came in above consensus.
DigitalOcean had the weakest performance against analyst estimates among the peers. The stock is up 37.3% since the results and currently trades at $45.53.
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 $41 million, up 17.6% year on year, beating analyst expectations by 3.08%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter. In addition, RPO (remaining performance obligation - leading indicator of revenue) and cRPO growth decelerated meaningfully, and gross margin deteriorated.
Couchbase had the weakest full year guidance update among the peers. The stock is down 27.6% since the results and currently trades at $16.08.
The author has no position in any of the stocks mentioned