Wrapping up Q1 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 mixed Q1; on average, revenues beat analyst consensus estimates by 3.76%, while on average next quarter revenue guidance was 0.82% above consensus. There has been a stampede out of high valuation technology stocks, but data storage stocks held their ground better than others, with share price down 1.93% since earnings, 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 $422.3 million, up 84.5% year on year, beating analyst expectations by 2.26%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating customer growth.
"During Q1, product revenue grew 84% year-on-year to $394 million dollars. We closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency," said Frank Slootman, Chairman and CEO, Snowflake.
Snowflake achieved the fastest revenue growth of the whole group. The company added 22 enterprise customers paying more than $1m annually to a total of 206. The stock is down 12% since the results and currently trades at $117.06.
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 $285.4 million, up 57.1% year on year, beating analyst expectations by 6.86%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.
MongoDB achieved the strongest analyst estimates beat among its peers. The company added 72 enterprise customers paying more than $100,000 annually to a total of 1,379. The stock is up 0.94% since the results and currently trades at $243.44.
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 $205.9 million, up 7.63% year on year, beating analyst expectations by 1.96%. It was a weaker quarter for the company, with a slow revenue growth.
Commvault Systems had the slowest revenue growth in the group. The company added 1 enterprise customer paying more than $100,000 annually to a total of 226. The stock is up 0.04% since the results and currently trades at $60.75.
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 $34.8 million, up 24.6% year on year, beating analyst expectations by 6.83%. It was a strong quarter for the company, with a solid beat of analyst estimates.
Couchbase pulled off the highest full year guidance raise among the peers. The stock is up 3.96% since the results and currently trades at $14.70.
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 $127.3 million, up 35.9% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.
DigitalOcean had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The company added 14,000 customers to a total of 623,000. The stock is down 2.64% since the results and currently trades at $42.35.
The author has no position in any of the stocks mentioned