4 Snowflake Analyst On Q4 Results: 'A New Enterprise Data Cloud Platform Of Choice'

Robust enterprise consumption drove triple-digit product revenue growth, and better-than-expected collections contributed to positive free cash flow of $7 million, the analyst said.

"The scale of new contracts and renewals during Q4 reinforces our bullish view on SNOW as a new enterprise data cloud platform of choice," he said. 

Robust RPO momentum increases Bracelin's confidence in the growth trajectory beyond fiscal year 2022, given the multi-quarter lag between contract signings and consumption revenue triggers, he said. 

Credit Suisse Applauds Snowflake: Snowflake continues to execute well, with data cloud becoming an increasingly strategic differentiator, enabling secure and governed data sharing, Zelnick said.

Consumption attributable to data from marketplace providers and a tenfold year-over-year increase in data marketplace listings signal a widening competitive moat, rising barriers to exit and broader platform adoption, the analyst said.

Better-than-expected net retentions also reflect customer satisfaction and strong uptake, he said.

The in-line product revenue guidance for fiscal-year 2022, the analyst said, reflects prudent conservatism rather than any underlying weakness.

"We believe Snowflake will play an increasingly important role across the entire data value chain, but remain Neutral due to its rich valuation at 45.6x EV/CY22 revenues," according to Credit Suisse.

Deutsche Bank On Snowflake: The fourth-quarter numbers support Deutsche Bank's thesis that Snowflake is in the sweet spot for two key secular trends of this decade: data-driven decision-making and cloud adoption, Colville said. 

The analyst said valuation and lockup worries have subsided.

SNOW Price Action: Snowflake shares gained 0.8% in Thursday's session, closing at $249.

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