Snowflake’s Stellar Q4 Performance: Surpasses EPS and Revenue Estimates, Frank Slootman Sells $200 Million in Shares
In the fourth quarter, Snowflake reported earnings per share (EPS) of $0.35, surpassing the estimated $0.17. The revenue for the quarter reached $774.7 million, exceeding expectations of $760.4 million. Notably, product revenue was $738.1 million, surpassing the estimated $723.3 million.
– Earnings Report: Snowflake, a company specializing in cloud data management, had a strong fourth quarter.
– EPS: They earned $0.35 per share, beating the expected $0.17.
– Revenue: Snowflake made $774.7 million, surpassing the expected $760.4 million.
– Product Revenue: This specifically was $738.1 million, also exceeding expectations.
– Leadership Change: Sridhar Ramaswamy is now the new CEO, replacing Frank Slootman.
– Q1 Guidance: They expect product revenue to be between $745 million to $750 million, falling short of the estimated $769.5 million.
– Other Notable Points:
– Net Revenue Retention Rate: This was 131%, showing that existing customers are spending more.
– CEO Transition: Frank Slootman steps down as CEO but remains as Chairman.
– Summary of Fiscal 2024 by Frank Slootman:
– Snowflake had a 38% increase in product revenue compared to the previous year, totaling $2.67 billion.
– Their adjusted free cash flow saw a 56% year-over-year growth, reaching $810 million.
– Snowflake is gaining traction with large enterprises globally, as more companies adopt their Data Cloud for AI and data strategies.
On February 28th, the CEO of Snowflake resigned, resulting in a 20% decline in the stock during after-hours trading. Over the course of 2022 and 2023, the CEO had engaged in pre-planned sales, offloading more than $200 million worth of $SNOW stock in 2023 alone.
Brokerages Price Targets on Snowflake $SNOW
• Bank of America lowered their target for Snowflake ($SNOW) to $212 from $265, maintaining a Neutral rating.
• Morgan Stanley downgraded Snowflake and reduced the target to $175 from $230.
• Piper Sandler adjusted their target to $240 from $250, maintaining an Overweight rating.
• Deutsche Bank lowered the target to $220 from $250 but maintained a Buy rating.
• DA Davidson decreased their target to $230 from $260, while still maintaining a Buy rating.
• UBS cut their target to $185 from $225, maintaining a Neutral stance.
• JP Morgan reduced their target to $170 from $200.
• JMP Securities raised their target to $235 from $212, rating it as Market Outperform.
• Jefferies revised their target down to $210 from $265.
• RBC adjusted their target to $246 from $255.
11. Melius Research lowered their target to $185 from $202.
• Scotiabank reduced their target to $207 from $226.
Median Price Target:
– Current: $212 (down by $38)
– Previous: $250
Highest Price Target:
– Current: $246 (down by $19)
– Previous: $265
Lowest Price Target:
– Current: $170 (down by $30)
– Previous: $200
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