Beth Kindig SA Article - Snowflake Stock strong

Beth Kindig SA article:

Snowflake Stock strong earnings continue:


Snowflake’s most recent results position the company as a premier software company.

Snowflake’s Q4 product sales increased 102% YoY to $360 million, after increasing 116% YoY in the year-ago quarter.

The company’s net retention ratio (NRR), which measures how much existing customers are increasing their spending on the platform, net of attrition, increased to a record high of 178%.


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 an 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 of Snowflake.

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Long SNOW 20%