Snowflake (SNOW) Q4 2022 Earnings
How Did SNOW Stock React to Q4 2022 Earnings?
S&P 500 over the same 30 days: +4.84%.
Did SNOW Beat Earnings? Q4 2022 Results
No. Snowflake reported Q4 2022 earnings of $-0.43 a share on Mar 2, 2022, missing the $0.03 consensus estimate by 1,533.3%. Revenue was $383.8M against a $372.6M estimate.
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.
- 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
What Was Snowflake's Outlook in Q4 2022?
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
| Metric | Q4 2022 | Q4 2021 | Year over year |
|---|---|---|---|
| Revenue | $383.8M | $190.5M | +101.5% |
| Gross Profit | $249.6M | $107.6M | +132.1% |
| Operating Income | −$152.0M | −$122.5M | +24.1% |
| Net Income | −$132.2M | −$98.9M | +33.6% |
SNOW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.