Following its Q3 earnings report, Snowflake's
Inside the Numbers
Snowflake reported a loss of $1.01 per share and revenue of $159.6 million. This is a 119% increase from 2019's Q3, and it topped analysts' expectations who were looking for $156 million. Compared to last quarter, growth slightly dipped from 121%.
Gross margins also slightly decreased from 59.6% to 58.2%. However, the company expects its margins to expand in the coming years as cloud costs come down, and it offers less promotional discounts to new customers. Due to its growth, Snowflake continues to hire workers and is adding to its sales staff.
In terms of guidance, Snowflake is looking for revenue between $162 million and $169 million. The company also said it now has 65 customers who account for more than $1 million in sales. It also has $930 million in revenue that has already been agreed upon which will show up on the income statement in coming quarters.
Stock Price Outlook
Snowflake is a fascinating company from a variety of perspectives. It has a market cap of over $100 billion and a price-to-sales ratio of 216. Despite this size and valuation, it counts the normally value-conscious Berkshire Hathaway
The company's software helps companies manage and make sense of their data. It then charges companies to access these "data warehouses". Its platform is built on top of cloud systems from Amazon