Beth Kindig’s I/O - $SNOW analysis

Today Beth’s I/O put out a free analysis for $SNOW. It caught my eye as it hits on what the board has been saying. Were the results ok but expectations were not?

There’s too much analysis to include it all here, the article link is below:…

I/O Conclusion:

“Snowflake reported strong results but there were a couple of small blemishes that impacted near-term growth. Long-term, the story remains intact and forward-looking metrics suggest that growth will remain robust going forward. The company is also expected to be profitable on an adjusted basis next year, cash flows are positive and the growth in cash flows is being driven by sustainable trends (and not just stock-based compensation).

The recent volatility in the company’s shares is likely due to its premium multiple coupled with a slight deacceleration in near-term growth. However, if management can continue to execute, then there is upside to its valuation over the long term. Forward-looking metrics such as RPO, RPO bookings, upfront cash receipts and enterprise customer strength (coupled with rising NRR), highlight the strong position Snowflake is in. Given the company’s product strength and positioning with large enterprise customers, I believe that Snowflake has been excessively penalized by the market.”