What To Expect From Snowflake’s (SNOW) Q4 Earnings

Jabin Bastian /
2023/02/28 2:50 am EST
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Data warehouse-as-a-service Snowflake (NYSE:SNOW) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter Snowflake reported revenues of $557 million, up 66.6% year on year, beating analyst revenue expectations by 3.36%. It was a mixed quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate. The company added 41 enterprise customers paying more than $1m annually to a total of 287.

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 49.9% year on year to $575.2 million, slowing down from the 101% 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 5.53%.

Looking at Snowflake's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. DigitalOcean delivered top-line growth of 36.2% year on year, beating analyst estimates by 1.18% and Commvault Systems reported revenue decline of 3.61% year on year, missing analyst estimates by 4.28%. DigitalOcean traded up 4.63% on the results, Commvault Systems was flat on the results. Read our full analysis of DigitalOcean's results here and Commvault Systems's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.05% over the last month. Snowflake is up 1.52% during the same time, and is heading into the earnings with analyst price target of $186.4, compared to share price of $155.25.

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