Snowflake (SNOW) Q4 2023 Earnings Report Analysis

– Quarterly revenue number: $579 million, up 75% year-over-year.
  Revenue quarter to quarter growth rate: 37%¹, up from 30% in Q3 2023.

– Quarterly earning number: -$0.64 per share, missing the Zacks Consensus Estimate of -$0.03 per share.
  Earning quarter to quarter growth rate: -23%, down from -14% in Q3 2023.

– Added 1,000 net new customers in Q4 2023, bringing the total to over 7,000 customers.

– Announced new features and integrations such as Python support, Snowpark Accelerated Preview Program, Snowflake Data Marketplace monetization, and deeper partnership with AWS .

– Operating expense increased by 84% year-over-year to $495 million in Q4 2023, mainly due to higher research and development and sales and marketing costs.

For Q1 2024, Snowflake expects:
– GAAP product revenue to be in the range of $568 million to $573 million¹.
– Non-GAAP operating margin to be -16%².
– Non-GAAP net loss per share to be between -$0.11 and -$0.09².
– GAAP product revenue to be $2.8 billion to $2.85 billion³.
– Non-GAAP operating margin to be -10%³.
– Non-GAAP net income per share to be positive for the second half of fiscal year 2024³.

These guidance numbers are lower than analysts’ expectations, which caused SNOW stock to fall sharply after the earnings report.
However, Snowflake also announced a $2 billion share buyback plan over three years, which could boost investor confidence.

Source: (1) .
(2) Snowflake Inc. (SNOW) Beats Q4 Earnings and Revenue Estimates.
(3) Snowflake (SNOW) Q4 2023 Earnings Call Transcript.
(4) Snowflake Reports Financial Results for the Fourth Quarter and Full-Year of Fiscal 2023.
(5) SNOW | Snowflake Inc. Analyst Estimates | MarketWatch.
(6) SNOW Stock: Snowflake Earnings Top Views, Shares Fall On Weak Outlook ….