Snowflake has announced its third-quarter earnings report for 2022 and it has very comfortably beaten the investor's expectations and predictions for the quarter along with giving positive guidance for the upcoming three months. As a result of all this, the company’s stock shot up more than 10% following the earnings announcement.
Let’s have a look at the earning numbers but before that here is an interesting official snippet about one of the world’s most powerful technology companies.
Wikipedia snippet about Snowflake: Snowflake Inc. is a cloud computing-based data warehousing company based in Bozeman, Montana. It was founded in July 2012 and was publicly launched in October 2014 after two years in stealth mode. The company’s name was chosen as a tribute to the founders’ love of winter sports.
The firm offers a cloud-based data storage and analytics service, generally termed “data warehouse-as-a-service”. It allows corporate users to store and analyze data using cloud-based hardware and software. It can run on Amazon S3 since 2014, on Microsoft Azure since 2018, and on the Google Cloud Platform since 2019. The company is credited with reviving the data warehouse industry by building and perfecting a cloud-based data platform. It was able to separate computer data storage from computing before Google, Amazon, and Microsoft.
The company was ranked first on the Forbes Cloud 100 in 2019. End of the snippet.
Now, coming back to the topic of this post, down below are the numbers.
Revenue: Snowflake has generated estimated quarterly earnings of around $334.4 million U.S. dollars against the stock analyst's expectation of $305.6 million. The margin of difference in this crucial metric is actually good enough to induce confidence in the minds of investors.
Loss per share: The company has only lost 51 cents per share which happens to be less than the expected number from the wall street investors. And it’s a good sign of growth in the upcoming quarters.
Then the stock of Snowflake shot up in value following this positive news and the same is visible in the graph given below.
Other than that, here are some valuable pieces of information from the earnings report to look at about the company.
- Product revenue of $312.5 million, representing 110% year-over-year growth
- Remaining performance obligations of $1.8 billion, representing 94% year-over-year growth
- 5,416 total customers
- A net revenue retention rate of 173%
- 148 customers with trailing 12-month product revenue greater than $1 million
I have to say that this is probably one of the most well broken down quarterly earnings reports that I have come across in a very long time. It is very well done to highlight the most important key metrics of the company’s growth.
Snowflake seems to be crushing it both in the arena of Technology and Business.
Kudos to the company’s management for doing such a great job.
Thank you for reading this, and God Bless Everyone.
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