US-listed data analytics business SNOW is one of the pin-ups for unprofitable tech trading on a big multiple (~16x) of revenue, and they report quarterly numbers in the US tonight. We hold 3% of the International Equities Portfolio in the stock having bought around current levels and while we see a huge future for Snowflake, their growth rates will be very important to where the stock trades from here. Recent channel checks by our research partners were positive, the consensus view was that demand for cloud data analytics seems to be holding up relatively well and while there were some comments around less aggressive growth, there was no sign of material deceleration which is what the market is concerned about.
We expect some moderation in their sales growth in Q3, with sales expected to be +61% on the same time last year, good growth but less than recent +100% rates. Revenue for the quarter should be $US540m while we expect them to book a loss of ~60cps.