SNOW - Snowflake: Acceleration In Product Innovation Brings The Company To The Forefront Of AI
2024-06-20 01:31:26 ET
Summary
- Snowflake beat expectations on both the top and bottom-line this quarter, as its core business remains very strong.
- The company raised its product revenue guidance for FY2025 and lowered margin guidance as a result of its investment into AI.
- The new CEO, Sridhar Ramaswamy, has prioritized customer engagement, execution, and product innovation, since taking over one quarter ago.
- He has been successful in accelerating the product innovation at Snowflake, with multiple new features to be generally available in the second half of the year.
- Snowflake also continues to grow with its largest customers, with the number of customers contributing more than $1 million in product revenue, growing 30% from the prior year.
Snowflake ( SNOW ) has reached new lows recently after recent announcements, along with a data breach that added more uncertainties.
I must say that my confidence in the new CEO Sridhar Ramaswamy has improved given what he has achieved in his first quarter as CEO, his speed of execution and urgency, and this is setting Snowflake up for a strong future indeed.
Management commentary was positive for its core business in the FY1Q25 quarter:
Snowflake: Acceleration In Product Innovation Brings The Company To The Forefront Of AIAs evidence of our Q1 results, our core business is very strong. We're still in the early innings of our plan to bring our world class data platform to customers around the globe. And in the first quarter alone, we saw some of our largest customers meaningfully increase their usage of our core offering. The combination of our incredibly strong data cloud, now powerfully boosted by AI, is the strength and story of Snowflake.