As we reflect back on the just completed Q3 data storage sector earnings season, we dig into the relative performance of 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 Q3; on average, revenues beat analyst consensus estimates by 4.38%, while on average next quarter revenue guidance was 0% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth , but data storage stocks held their ground better than others, with share prices down 2.88% 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 $557 million, up 66.5% year on year, beating analyst expectations by 3.36%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate.
Snowflake achieved the fastest revenue growth of the whole group. The company added 41 enterprise customers paying more than $1m annually to a total of 287. The stock is down 14.7% since the results and currently trades at $121.79.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $333.6 million, up 47% year on year, beating analyst expectations by 9.56%. It was a strong quarter for the company, with very optimistic guidance for the next quarter and an impressive beat of analyst estimates.
MongoDB achieved the strongest analyst estimates beat but had the weakest full year guidance update among its peers. The company added 83 enterprise customers paying more than $100,000 annually to a total of 1,545. The stock is up 19.2% since the results and currently trades at $172.8.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $188 million, up 5.74% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth.
Commvault Systems had the weakest performance against analyst estimates and slowest revenue growth in the group. The company lost 11 enterprise customers paying more than $100,000 annually and ended up with a total of 173. The stock is up 5.28% since the results and currently trades at $64.09.
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 $152.1 million, up 36.5% year on year, beating analyst expectations by 2.81%. It was a mixed quarter for the company, with a full year guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
The stock is down 16.7% since the results and currently trades at $24.54.
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 $38.5 million, up 25% year on year, beating analyst expectations by 5.35%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter.
Couchbase pulled off the highest full year guidance raise among the peers. The stock is down 7.46% since the results and currently trades at $12.90.
The author has no position in any of the stocks mentioned