3452

Data Storage Stocks Q2 Teardown: Snowflake (NYSE:SNOW) Vs The Rest


Kayode Omotosho /
2022/09/15 4:28 am EDT
Add to Watchlist

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Snowflake (NYSE:SNOW), and the best and worst performers in the data storage group.

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 Q2; on average, revenues beat analyst consensus estimates by 5.17%, while on average next quarter revenue guidance was 0.63% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and while some of the data storage stocks have fared somewhat better than others, they have not been spared, with share price declining 5.94% since the previous earnings results, on average.

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 $497.2 million, up 82.6% year on year, beating analyst expectations by 6.4%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

“During Q2, product revenue grew 83% year-over-year to $466 million dollars. Our non-GAAP product gross margin exceeded 75%, and we continue to generate non-GAAP operating income and free cash flow,” said Frank Slootman, Chairman and CEO, Snowflake.

Snowflake Total Revenue

Snowflake achieved the fastest revenue growth of the whole group. The company added 40 enterprise customers paying more than $1m annually to a total of 246. The stock is up 24% since the results and currently trades at $198.21.

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

Best Q2: 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 $39.7 million, up 33.9% year on year, beating analyst expectations by 10.9%. It was a strong quarter for the company, with an impressive beat of analyst estimates and a solid top line growth.

Couchbase Total Revenue

Couchbase scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 5.18% since the results and currently trades at $14.09.

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

Weakest Q2: 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 $133.8 million, up 28.9% year on year, missing analyst expectations by 0.44%. It was a slower quarter for the company, with a decline in net revenue retention rate and a miss of the top line analyst estimates.

DigitalOcean had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 6.64% since the results and currently trades at $44.68.

Read our full analysis of DigitalOcean's results here.

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 $197.9 million, up 7.93% year on year, beating analyst expectations by 1.41%. It was a weaker quarter for the company, with a slow revenue growth.

Commvault Systems had the slowest revenue growth among the peers. The company lost 42 enterprise customers paying more than $100,000 annually and ended up with a total of 184. The stock is down 16.8% since the results and currently trades at $51.02.

Read our full, actionable report on Commvault Systems 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 $303.6 million, up 52.7% year on year, beating analyst expectations by 7.56%. It was a solid quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analysts' estimates.

The company added 83 enterprise customers paying more than $100,000 annually to a total of 1,462. The stock is down 25% since the results and currently trades at $242.

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

The author has no position in any of the stocks mentioned