Snowflake Earnings: What To Look For From SNOW

Cloud data platform provider Snowflake (NYSE:SNOW) will be reporting earnings this Wednesday after market hours. Here’s what to look for.

Snowflake beat analysts’ revenue expectations last quarter, reporting revenues of $1.39 billion, up 33.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates. It added 46 enterprise customers paying more than $1 million annually to reach a total of 779.

Is Snowflake a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Snowflake’s revenue to grow 29.5% year on year, slowing from the 31.8% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Snowflake has a history of exceeding Wall Street’s expectations.

Looking at Snowflake’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. DigitalOcean delivered year-on-year revenue growth of 28.6%, beating analysts’ expectations by 0.9%, and Commvault reported revenues up 11.4%, topping estimates by 1.2%. DigitalOcean traded down 2.1% following the results while Commvault was also down 19.5%.

Read our full analysis of DigitalOcean’s results here and Commvault’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 14.7% on average over the last month. Snowflake is up 8.2% during the same time and is heading into earnings with an average analyst price target of $330.41 (compared to the current share price of $332.75).

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