SNOW - Snowflake Investors Just Got Some Bullish News
2024-05-30 05:44:00 ET
Whenever I write about cloud-based data company Snowflake (NYSE: SNOW) , I try to do so with plenty of nuance. It's a complex business with a lot to consider. I don't want to downplay the good but I don't want to overlook the bad either -- both sides must be considered to make a confident investment decision.
On May 22, Snowflake reported financial results for its fiscal first quarter of 2025. The report contained some bullish news that some might have overlooked. There are still some concerns with the business (highlighted below), but I primarily want to point out why this bit of bullish news is really good for shareholders.
Subscription software companies such as Snowflake factor in something called remaining performance obligations (RPO) into their financial reports. An example of an RPO might involve a business that decides it wants to make use of its enterprise data and believes Snowflake's applications can help. After sitting down with a sales rep, the business decides to sign a two-year deal with Snowflake.
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Snowflake Investors Just Got Some Bullish News