Snowflake (SNOW) Reports Q1: Everything You Need To Know Ahead Of Earnings

Cloud data platform provider Snowflake (NYSE:SNOW) will be reporting results this Wednesday afternoon. Here’s what you need to know.

Snowflake beat analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 30.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates. It added 45 enterprise customers paying more than $1 million annually to reach a total of 733.

Is Snowflake a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Snowflake’s revenue to grow 27.1% year on year, improving from the 25.7% increase it recorded in the same quarter last year.Snowflake Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snowflake has a history of exceeding Wall Street’s expectations.

Looking at Snowflake’s peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. DigitalOcean delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 3.3%, and Commvault reported revenues up 13.3%, topping estimates by 1.6%. DigitalOcean traded up 48% following the results while Commvault was also up 14.4%.

Read our full analysis of DigitalOcean’s results here and Commvault’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 10% on average over the last month. Snowflake is up 19.3% during the same time and is heading into earnings with an average analyst price target of $229.14 (compared to the current share price of $172.02).

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