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Highlights

  • Snowflake's Q1 FY25 revenue surged by 32.89% to USD 828.71 million, with product revenue hitting USD 789.6 million, up 34% year-over-year
  • Snowflake's gross profit increased significantly from USD 148.2 million in 2020 to USD 1907.9 million in 2024, reflecting its scaling efficiency
  • Snowflake's Q2 FY25 guidance includes projected product revenue of USD 805-810 million, aiming for a 26%-27% year-over-year growth rate

Snowflake Inc. (NYSE: SNOW) empowers organizations to leverage their data through Snowflake's Data Cloud platform. In FY25's first quarter, the company saw 32.89% increase in total revenue to USD 828.71 million. Product revenue grew to USD 789.6 million, marking 34% year-over-year growth. As of April 30, 2024, the net revenue retention rate stood at 128%. However, despite higher revenues, the company reported a net loss of USD 316.99 million, impacted by escalated total operating expenses.

Over the last five years, Snowflake demonstrated remarkable revenue growth, from USD 264.7 million in 2020 to USD 2806.5 million in 2024. This trajectory underscores its robust market presence and effective sales strategies. Concurrently, gross profit surged from USD 148.2 million in 2020 to USD 1907.9 million in 2024, highlighting Snowflake's scaling efficiency and potential for sustained financial success.

Recent business update

According to Snowflake's press release on June 4, 2024, the company expanded access to industry-leading enterprise AI through enhancements to Snowflake Cortex AI and Snowflake ML. Additionally, Snowflake intensified its focus on developers by offering comprehensive tools to create enterprise-grade pipelines, models, and AI-powered applications.

Company outlook

Snowflake issued guidance for Q2 FY25, encompassing both GAAP and non-GAAP metrics. It anticipates product revenue to range between USD 805 million and USD 810 million, reflecting a 26% to 27% year-over-year increase. The projected operating income margin is around 3%, with an estimated weighted-average diluted share count of 362 million for computing net income per share attributable to Snowflake Inc.

Top 10 shareholders

The top 10 shareholders of SNOW collectively hold approximately 26.25% of the total shares, reflecting a diverse shareholder base. The Vanguard Group, Inc., is the largest shareholder, owning approximately 6.32%. It is followed by BlackRock Institutional Trust Company, N.A., which owns 3.33% of the total shares.

Stock performance

SNOW's stock price has declined by 10.91% over the last three months and 11.74% over the past nine months. Currently, it is approaching the lower end of its 52-week trading range of USD 237.72 and USD 122.60.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 22, 2024. The reference data in this report has been partly sourced from EODHD/Others.