Snowflake Shares Up After 3Q Results
04 December 2020 - 4:55AM
Dow Jones News
By Michael Dabaie
Snowflake Inc. shares were up 14% to $334.16 around midday.
The provider of cloud data warehousing software Wednesday after
the market close reported third-quarter total revenue was $159.6
million, up from $73 million a year earlier. FactSet consensus was
for $147.7 million.
Product revenue was $148.5 million, which the company said was
up 115% year-over-year. FactSet consensus was for $136.6
million.
Loss was $168.9 million, wider than a year earlier loss of $88.1
million.
Loss per share was $1.01, versus a loss of $1.92 in the year-ago
period. Weighted-average shares were about 166 million, from about
46 million a year earlier.
Snowflake had its initial public offering in September and had
an IPO pricing at $120.
"We are pleased with our performance this first quarter as a
public company," said Chief Executive Frank Slootman. "The period
was marked by continued strong revenue growth coupled with
improving unit economics, cash flow, and operating
efficiencies."
Snowflake guided for fourth-quarter product revenue of $162
million to $167 million and fiscal-year product revenue of $538
million to $543 million.
J.P. Morgan said in a note that Snowflake posted a healthy third
quarter with product revenue exceeding its forecast. "The
combination of growth and scale remains elite as it is remarkable
to see this revenue stream approach a $600M annual run-rate with
triple-digit growth," J.P. Morgan said in its note.
J.P. Morgan boosted its price target to $250 from $247 and rates
the stock at Neutral.
"Snowflake could grow into and beyond the current valuation in
future years, but it is difficult to see material outperformance
within the horizon of our price target," J.P. Morgan said in its
note.
Mizuho Securities USA said that fourth-quarter guidance was
"roughly in line, but we believe it will likely prove
conservative."
"We maintain that SNOW is enabling customers to transform from
large data stores to data-driven organizations, and that companies
will increasingly standardize on SNOW. Although SNOW already trades
at a substantial premium, we believe the shares can go higher as
the company continues to grow at elevated rate" over the next
twelve months and beyond. Mizuho reiterated its Buy rating and
boosted its price target to $310 from $300.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
December 03, 2020 12:40 ET (17:40 GMT)
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