Snowflake - Melted away by the economic heat?

Share prices tumbled after the results and the stock is now in historical low territory.

So what should investors take note of?

Snowflake prides itself on being a fully-managed cloud data warehouse that enables organizations to store and analyze data in real-time.

It has the know-how to help customers store, manage and analyze data across clouds, hence earning its products and services name.

It has also slowly ventured outside of that, by looking into cybersecurity, data engineering, and data science.

But it is still predominantly a cloud storage and analytical company.

Snowflake used to be and is still is the company with an above-average DBNR. As Snowflake is a SaaS company, it continuously earns revenue via subscriptions from its clients.

Most of the time, SaaS companies would increase their subscription by offering more services, which convince clients to pay up. This ensures the DBNR is above 100% or more.

Keen-sighted investors might notice that although DBNR is still high, it is slowly slipping.

Even though the guidance seems ok, analysts were disappointed. YoY Product revenue growth will slow down to 34%, contributing USD 625 million. This is against an estimate of USD 646.3 million.

However, judging that the gross margins still remain high, what do you think?

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