Snowflake Q4: Panic Time Is Buying Time (Rating Upgrade)

Mar. 01, 2024 6:51 AM ETSnowflake Inc. (SNOW) StockSNOW41 Comments
The Asian Investor
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Summary

  • Snowflake's shares dropped 18% on a disappointing FQ1'25 guidance and CEO departure. However, FY 2024 results were strong.
  • Snowflake beat expectations for earnings and revenues, showing continued top line and customer acquisition momentum.
  • Although customer monetization is weakening, Snowflake's net revenue retention rate is still way above 100%, indicating solid organic revenue growth.
  • The free cash flow profile is drastically improving.
  • Shares have upside revaluation potential once uncertainty about the company's CEO change dissipates.

Red down arrow crashes the concrete ground. Illustration of the concept of price drop of stocks and economic recession

Dragon Claws/iStock via Getty Images

Shares of Snowflake (NYSE:SNOW) skidded 18% on Thursday after the company's guidance for FQ1'25 disappointed and it announced that Snowflake's CEO was leaving the data cloud service provider. However, Snowflake's actual results for FQ4'24 were very good

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