SNOWFLAKE INC Reports Second Quarter FY2024 Earnings Results on July 31st 2023
August 30, 2023
🌥️Earnings Overview
On August 31st 2023, SNOWFLAKE INC ($NYSE:SNOW) announced their earnings for the second quarter of FY2024, ending August 23rd. The total revenue for the quarter increased by 35.5% to USD 674.0 million, compared to the same period last year. Net income reported was USD -226.9 million, compared to the previous year’s net income of -222.8 million.
Price History
On Wednesday, July 31st 2023, SNOWFLAKE INC released their second quarter FY2024 earnings results. The stock opened at $151.9 and closed at $155.7, up by 2.0% from their previous closing price of $152.6. This marks the company’s second consecutive quarter of positive earnings growth. SNOWFLAKE INC has since reduced costs and streamlined their operations resulting in improved profitability and overall performance. The company’s growth can be attributed to the success of their cloud computing services, which has seen a sharp increase in demand over the past year.
The company also reported a strong increase in revenue from their digital advertising services, which have become increasingly popular with organizations of all sizes. Overall, SNOWFLAKE INC has reported solid performance in the second quarter of FY2024 and is well positioned for future growth and success. Investors are encouraged by the company’s continued focus on innovation and are optimistic about the potential for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Snowflake Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.44k | -860.6 | -34.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Snowflake Inc. More…
| Operations | Investing | Financing |
| 679.23 | -472.82 | -364.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Snowflake Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.51k | 2.21k | 16.22 |
Key Ratios Snapshot
Some of the financial key ratios for Snowflake Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 82.4% | – | -41.1% |
| FCF Margin | ROE | ROA |
| 24.3% | -11.9% | -8.4% |
Analysis
GoodWhale has conducted an analysis of SNOWFLAKE INC‘s fundamentals. The Star Chart shows that SNOWFLAKE INC has a high health score of 7/10 with regards to its cashflows and debt, indicating that the company is capable of paying off debt and funding future operations. SNOWFLAKE INC is strong in asset and growth, but weak in dividend and profitability. Based on this, we classify SNOWFLAKE INC as a ‘cheetah’, meaning it has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Investors who are interested in companies such as SNOWFLAKE INC may be looking for higher returns than more established, profitable companies. These investors typically have a higher risk tolerance and may be willing to accept the higher levels of risk associated with investing in companies that have yet to reach profitability or establish a strong dividend. In addition, these investors may be looking for pioneering companies that have the potential to become industry leaders, and thus offer high potential returns. More…
Peers
Snowflake Inc is a data warehouse company that was founded in 2012. The company has raised over $1.4 billion in funding and is currently valued at $12 billion. Snowflake competes with Teradata, Palantir, Microsoft, and other data warehouse companies.
– Teradata Corp ($NYSE:TDC)
Teradata is a provider of data warehousing and analytic solutions. The company’s products and services include data warehouse platforms, big data analytics, and consulting services. Teradata’s products and services are used by companies in a variety of industries, including healthcare, finance, retail, and telecommunications.
As of 2022, Teradata had a market capitalization of 3.1 billion dollars and a return on equity of 37.85%. Teradata’s strong market position and high ROE are indicative of the company’s success in the data warehousing and analytics market. Teradata’s products and services are in high demand by companies looking to gain insights from their data. The company is well-positioned to continue its success in the future.
– Palantir Technologies Inc ($NYSE:PLTR)
Palantir Technologies Inc is a software company that specializes in big data analysis. The company went public in 2020 and has a market cap of 16.84B as of 2022. The company has a Return on Equity of -13.19%.
Palantir was founded in 2004 by a group of Stanford computer scientists who were interested in using big data to solve complex problems. The company has since grow to become a leading provider of big data solutions to both the public and private sectors. Palantir’s products are used by governments and organizations around the world to detect and prevent crime, track and manage assets, and understand and analyze large data sets.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of 1.76 trillion as of 2022. It has a Return on Equity (ROE) of 45.3%. The company develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.
Summary
Investing in Snowflake Inc has yielded mixed results for investors. In Q2 FY2024, the company reported total revenue of USD 674.0 million, a 35.5% year over year increase. Net income however remained in the red at USD -226.9 million, a slight increase from the prior year’s net income of -222.8 million. Investors are advised to closely monitor future developments as the company continues to focus on increasing revenue and reducing losses.
Related Posts
Recent Posts
