For anyone still in Snowflake…
I guess if you add a bombed out share price to:
- a massive beat across the board and raise beyond estimates
- Stabilised revenue growth of 28.3%
- Stabilised NRR at 127%
- Accelerating RPO up 55%
- A collaboration deal with Anthropic for access to LLMs
- Another AI acquisition (in AI observability)
- And finally a more reasonable valuation profile
… you get a significant spike in the share price which was up 22% after hours.
New product launches, Snowpark uptake (now 3% of revenues), RPO acceleration and large $1m customer growth were the highlights
Total customer count and margin pressures (with YoY declines in GM, Op Margin and FCF margin) were the lowlights
Sequential product revenue growth guidance was low but then there has always been a drop off from Q3 to Q4.
The earnings call was very encouraging particularly pertaining to coverage of the slew of new product releases in Q3 (more than the whole of 2024 together) and in particular the customer reaction/update of: Unistore, Iceberg, Cortex AI, Polaris, Open Catalog, Notebooks & Open tables. They are now starting to build new product revenue uptake into their guidance (as well as efficiency headwinds).
In addition there was mention of green shoots of a relationship with Google Cloud which so far has been a closed shop to Snowflake.
Overall the analysts on the call seemed particularly pleased with the results announced.
Q3 Results can be found here…
https://investors.snowflake.com/financials/quarterly-results/default.aspx
Earnings call transcript for those who can access SA here…