The earnings call for Snowflake (SNOW) presented a mix of positive and negative points, reflecting the company's current performance and future outlook.
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Snowflake had a strong third quarter, outperforming expectations and increasing their FY '25 product revenue guide.
2. Product revenue for the quarter was $900 million, up 29% year on year.
3. Remaining performance obligations totaled $5.7 billion with year-over-year growth accelerating to 55%.
4. Non-GAAP operating margin improved to 6%.
5. Snowflake's AI feature family, Snowflake Cortex, is showing significant adoption.
6. Snowflake's product development engine continues to accelerate, launching the same number of Tier 1 features to general availability in Q3 as in all of fiscal 2024.
7. Snowflake's AI and ML features are being used by over 3,200 accounts.
8. Snowflake's collaboration with AWS has resulted in over $3.9 billion booked over the past four quarters, an increase of 68% versus the preceding four quarters.
9. Snowflake's intended acquisition of Datavolo strengthens their foundation to deliver an extensible and flexible connectivity platform for unstructured and structured data.
10. Snowflake's partnership with Anthropic to bring powerful AI models to their customers through Snowflake Cortex AI.
Bearish Points:
1. Technical difficulties during the call caused a temporary disruption.
2. Snowflake's non-GAAP operating margin guidance for FY '25 is 5%, which may indicate limited profitability growth.
3. Snowflake's share count guidance does not include the impact from potential upcoming stock repurchases, which could affect earnings per share calculations.
4. Q4 has the most number of holidays, which may impact revenue growth due to seasonality.
For more information about Snowflake's earnings call, you can read the relevant news: Snowflake (SNOW) Q3 2025 Earnings Call Transcript
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