Snowflake (SNOW) is gearing up to announce its third-quarter fiscal 2024 results on November 29th. With a strong track record of beating expectations, the company is expected to continue its growth trajectory. In this article, we will explore the anticipated performance of Snowflake in the upcoming earnings report and delve into the factors contributing to its success. Stay tuned for insights into the expanding clientele, strong partner base, and the growing adoption of Snowpark by data scientists and engineers.
Anticipated Growth in Q3 Fiscal 2024
Explore the expected growth and performance of Snowflake in the third quarter of fiscal 2024.
Snowflake (SNOW) is expected to continue its impressive growth trajectory in the third quarter of fiscal 2024. The company has consistently beaten expectations in the past, and analysts anticipate another strong performance.
With an estimated year-over-year revenue growth of 27.56%, reaching $71.54 million, Snowflake is poised to deliver robust financial results. The bottom line is also projected to show significant growth, with a consensus estimate of 16 cents per share, representing a 45.45% increase compared to the previous year.
The company's expanding clientele and strong partner base are key factors contributing to its anticipated growth. Snowflake has seen a steady increase in customers using its services for data science, machine learning, and artificial intelligence applications. Additionally, the growing adoption of Snowpark by data scientists and engineers is expected to further drive the company's top-line growth.
Expanding Clientele and Strong Partner Base
Discover how Snowflake's expanding clientele and strong partner base contribute to its success.
Snowflake has been attracting a growing number of customers, with 402 customers generating over $1 million in product revenues in the past 12 months, marking a 62% year-over-year increase. The company also boasts 639 Forbes Global 2000 customers, reflecting a 16.6% year-over-year growth.
Notably, 63% of Snowflake's Global 2000 customers are utilizing Snowpark on a weekly basis, highlighting the popularity and value of the platform among enterprises. This strong adoption is a testament to Snowflake's ability to meet the evolving needs of businesses in the data-driven era.
Snowflake's success is further amplified by its partnerships with industry leaders such as NVIDIA, Microsoft, Amazon, ServiceNow, Cognizant, and Dell Technologies. These collaborations enable Snowflake to leverage cutting-edge technologies and provide comprehensive solutions to its customers.
Growing Adoption of Snowpark
Learn about the increasing adoption of Snowpark by data scientists and engineers.
Snowpark, Snowflake's innovative offering for data scientists and engineers, has gained significant traction in the industry. It provides ML-powered SQL extensions, including anomaly detection, top insights, and time series forecasting, which are valuable tools for analysts.
The growing adoption of Snowpark is evident in the company's impressive performance. In the fiscal second quarter, Snowflake added over 400 Snowpark customers, and consumption grew by approximately 70% on a sequential basis.
Data scientists and engineers are increasingly relying on Snowpark to unlock the full potential of their data and drive actionable insights. This trend is expected to contribute to Snowflake's top-line growth in the upcoming quarter and beyond.
Positive Earnings Outlook and Analyst Recommendations
Explore the positive earnings outlook for Snowflake and analyst recommendations.
According to the Zacks model, Snowflake has a positive Earnings ESP of +67.33% and a Zacks Rank #2, indicating a higher likelihood of an earnings beat. The company has consistently outperformed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 244.45%.
Analysts are optimistic about Snowflake's future prospects, with several other companies in the same industry also showing positive earnings outlooks. Core & Main (CNM), Bilibili (BILI), and Veeva Systems (VEEV) are worth considering for their upcoming earnings releases, each with their unique growth potential and market positioning.
Stay updated on the latest earnings announcements and recommendations with the Zacks Earnings Calendar, which provides valuable insights for investors and analysts alike.
