While Nvidia took all the headlines overnight, fellow AI operative Snowflake also reported results that were ahead of expectations for the quarter while guidance was also solid. This is the first full quarter that Sridhar Ramaswamy, a former Google executive and co-founder of search startup Neeva, has been Snowflake’s CEO, and we were looking for a re-acceleration of growth after a period of turbulence that had weighed on the share price – the stock is down 18% this year.
- For Q1, product revenue was up 34% to $789.6mn, 5% ahead of consensus ($749mn), while they guided to $805-810mn for Q2, ahead of the $787m expected.
Shares were trading up 4% after hours, which we think is about right. While the result was a beat, their guidance does imply that revenue growth is slowing rather than accelerating despite a big uptick in headcount over the past year. Still, the new CEO has some work to do.
MM remains long and bullish SNOW US
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