(Updated — November 30, 2023 6:02 AM EST)
Snowflake (NYSE:SNOW) shares gained more than 8.5% in early Thursday trade following the reported Q3 results.
EPS of $0.25 came in better than the consensus estimate of $0.16. Revenue grew 32% year-over-year to $734.2 million, beating the consensus estimate of $713.36M. Product revenue increased 34% year-over-year to $698.5M.
Snowflake now has 436 customers with trailing 12-month product revenue greater than $1M, and 647 customers from the Forbes Global 2000 list. These figures represent year-over-year growths of 52% and 10%, respectively.
For Q4, the company expects product revenue in the range of $716-$721M, representing a year-over-year growth of 29-30%. For the full year, product revenue is expected to be $2.65 billion, representing a 37% year-over-year growth.
Morgan Stanley analysts raised the price target by $15 to $230 per share.
«Q3 outperformance on improving consumption trends, Q4 guidance well ahead of consensus expectations, and reaccelerating bookings growth signal a stabilization in the business. Improving secular growth trends, a strong product cycle ahead, and the Rule of 60 profile keep us firmly OW,» analysts said.
Goldman Sachs analysts also reiterated a Buy rating on SNOW stock amid stabilizing consumption trends.
«With a still sizable opportunity from on-prem migrations, expansion within G2K accounts and an emergent Gen-AI product cycle, we believe Snowflake remains uniquely positioned to sustain 30%+ revenue growth with high (and expanding) margins.»
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