Snowflake (SNOW) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2023/05/23 4:28 am EDT
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Data warehouse-as-a-service Snowflake (NYSE:SNOW) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Snowflake reported revenues of $589 million, up 53.5% year on year, beating analyst revenue expectations by 2.36%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a decline in net revenue retention rate. The company added 43 enterprise customers paying more than $1m annually to a total of 330.

Is Snowflake buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Snowflake's revenue to grow 44.1% year on year to $608.7 million, slowing down from the 84.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Snowflake Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.99%.

Looking at Snowflake's peers in the data and analytics software segment, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by 0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 6.38% over the last month. Snowflake is up 25.3% during the same time, and is heading into the earnings with analyst price target of $185.3, compared to share price of $179.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.