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Snowflake (NYSE: SNOW) will announce its earnings after market hours today. Investors are keenly watching to see if the data warehousing giant will continue its streak of beating expectations.
Last quarter, Snowflake's revenue grew by 32.9% year-over-year to $828.7 million, surpassing analyst expectations by 5.4%. However, the quarter wasn’t without issues. The company missed billing estimates and saw a decline in its gross margin. Despite this, Snowflake added 24 new enterprise customers, bringing the total number of clients paying over $1 million annually to 485.
For this quarter, analysts predict Snowflake’s revenue will reach $850 million, marking a 26.1% growth compared to last year. This represents a slowdown from the 35.5% growth seen in the same period last year. Adjusted earnings per share (EPS) are expected to be $0.16.
| Metric | Last Quarter | Estimated |
|---|---|---|
| Revenue | $828.7 million | $850 million |
| Revenue Growth (YoY) | 32.9% | 26.1% |
| Adjusted EPS | — | $0.16 |
| Enterprise Customers | 485 | — |
Snowflake has consistently outperformed Wall Street's revenue estimates for the past two years, with an average beat of 3.3%. Analysts have largely maintained their forecasts in the last month, suggesting steady confidence in the company's performance.
In comparison, peers like Commvault Systems (NASDAQ: CVLT) and DigitalOcean (NYSE: DOCN) reported Q2 revenue growth of around 13%, both surpassing expectations. Following their results, Commvault’s stock rose by 24.1%, and DigitalOcean’s increased by 11.9%.
Investors in the data and analytics software sector remain cautious, as seen in the flat share prices over the past month. Snowflake’s stock is currently priced at $131.92, with an average analyst target of $184.1.
