Companies /Technology

Snowflake Inc - Class A

NYSE: SNOW Software - Application
$337.18
▼ $19.29 (−5.41%) today
Markets closed · 11:34am ET

Q4 2022 Earnings

Reported Mar 2, 2022, 4:06pm ET · SEC source
$-0.43
Miss −1,533.33%
EPS · est. $0.03
$383.8M
Beat +3.00%
Revenue · est. $372.6M
+2.8%
Beating market
SNOW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+20%+40%Mar 2Mar 3report 4:06pm ETearnings−1.9%+15.8%
0+20%+40%Mar 2Mar 3earnings−1.9%+15.8%
SNOW +15.8%S&P 500 −1.9%
0+20%+40%Mar 2Mar 3report 4:06pm ETearnings−2.9%+15.8%
0+20%+40%Mar 2Mar 3earnings−2.9%+15.8%
SNOW +15.8%NASDAQ −2.9%
0+20%+40%Mar 1Mar 10report 4:06pm ETearnings−2.7%−0.3%
0+20%+40%Mar 1Mar 10earnings−2.7%−0.3%
SNOW −0.3%S&P 500 −2.7%
0+20%+40%Mar 1Mar 10report 4:06pm ETearnings−4.4%−0.3%
0+20%+40%Mar 1Mar 10earnings−4.4%−0.3%
SNOW −0.3%NASDAQ −4.4%
−15.37%
Day of report
−6.41%
Next session
−11.68%
One week
+7.68%
30 days

S&P 500 over the same 30 days: +4.84%.

Did SNOW Beat Earnings? Q4 2022 Results

Snowflake posted a sharply mixed fourth quarter, doubling its top line while falling well short of profit expectations, as the cloud data platform reported Q4 fiscal 2022 revenue of $383.77 million, a 101.5% year-over-year gain that edged past the $372.59 million consensus by 3.00%, yet GAAP earnings per share came in at -$0.43, a steep miss against the $0.03 consensus estimate. The earnings shortfall reflected $167.77 million in stock-based compensation charges that widened the gap between GAAP results and the underlying business momentum; on a non-GAAP basis, Snowflake actually swung to operating profitability with an 18 million dollar gain. The consumption-based model showed its strength through a 178% net revenue retention rate and $2.60 billion in remaining performance obligations, up 99% year-over-year. The company also completed its $800 million acquisition of Streamlit, expanding into data application development. Looking ahead, management guided full-year fiscal 2023 product revenue of $1.88 billion to $1.90 billion, representing 65-67% growth, with a 1% non-GAAP operating income margin.

Key Takeaways
  • 102% year-over-year product revenue growth driven by consumption-based model
  • Net revenue retention rate of 178% driven by continued growth from largest customers
  • Remaining performance obligations of $2.6 billion representing 99% YoY growth
  • Non-GAAP product gross margin improvement to 75% from 70% year-over-year
  • Customer base grew to 5,944 total customers
  • 184 customers with trailing 12-month product revenue greater than $1 million

“Snowflake finished fiscal 2022 with record-breaking consumption and bookings results, including triple-digit product revenue growth. Remaining performance obligations were $2.6 billion, representing year-on-year growth of 99%. Our net revenue retention rate reached 178% driven by continued growth from our largest customers.”

Snowflake CEO, on the earnings call

Forward Guidance & Outlook

For Q1 fiscal 2023, Snowflake guided product revenue of $383-$388 million (79-81% YoY growth), non-GAAP operating loss margin of -2%, and ~359 million diluted weighted-average shares. For full-year fiscal 2023, the company guided product revenue of $1,880-$1,900 million (65-67% YoY growth), non-GAAP product gross margin of 74.5%, non-GAAP operating income margin of 1%, adjusted free cash flow margin of 15%, and ~360 million diluted weighted-average shares.

SNOW YoY Financials

Q4 2022 vs Q4 2021 · SEC filings Q4 2021 Q4 2022
$0$200.0M$400.0M$190.5M$383.8MRevenue$107.6M$249.6MGross Profit$-122,465,764$-152,029,000Operating Income$-98,939,133$-132,153,000Net Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

SNOW Revenue by Segment

Product Revenue$359.6M+102.0%
Professional Services and Other$24.2M

Figures from SEC filings and company reports. Not investment advice.