Three months after the largest software IPO ever, Snowflake’s Q3 earnings takes place this week. We’ve outlined the date, how to listen, and what to expect from the call.
Snowflake took the public markets by storm back in September when it had the largest IPO for a software company in history. It really was a day of mania on Wall Street. Snowflake priced their IPO at $120 per share, yet institutional investors went crazy for the Buffett-backed data warehouse company and it reached the public markets at a price of $245, closing at $253. The company raised nearly $4 billion.
Amazingly, the stock has only strengthened since then, up around 30%. It’s clear that investors are buying into the growth story and the company Snowflake will, hopefully, be in the future. This means they are subject to some incredibly high expectations, ones only satiated by consistent blockbuster earnings reports. Let’s see what Snowflake has in store for us this week.
When is Snowflake’s earnings date?
Snowflake reports earnings for the third quarter of the fiscal year 2021, on Wednesday, 2nd of December at 5:00 pm Eastern Time.
How can I listen to Snowflake’s earnings call?
To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Snowflakes’s investor relations page.
What to expect
Consensus estimates for Snowflake’s quarter expect revenue of $147.5 million and a loss of $0.26 a share, although there’s very much a feeling that, in order to keep investors happy and maintain it’s sky-high valuation, it will have to beat these figures significantly. To justify its $90 billion market cap, the company will need to keep posting incredible growth figures, otherwise, sentiment could change very quickly amongst investors.
One of the reasons for the mania surrounding Snowflake’s IPO is its sky-high net revenue retention rate of 158%. This number represents the recurring revenue from Snowflake’s existing customer base. If the number is greater than 100%, then growth from its existing customer base more than offsets any losses from them. A rate of 158% is one of the best of any public SaaS company and shows the power of Snowflake’s products and services, as well as its ability to retain and upsell customers. Investors will be keen to see if the company can maintain it this quarter.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.