Snowflake’s revenue soared in the fourth quarter; Website visits allude to this

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Snowflake Inc. (SNOW), a cloud-based data platform, has been a popular stock since its IPO in 2020, in part due to its rapid growth. Despite the company’s latest fourth quarter results failing to enthuse investors, Snowflake produced some impressive metrics on the surface, including robust revenue growth.

Surprisingly, the new monthly website visitor metric TipRanks already indicated that Snowflake could see strong revenue in the fourth quarter.

During the fourth quarter, Snowflake’s revenue totaled $383.8 million, up 101% year-over-year. It easily exceeded the average forecast of $372.7 million. In particular, product revenue grew by 102%, acting as a tailwind.

The ability to display the total number of estimated visitors to a website even before earnings are announced is one of the most beneficial features of the new tool. Statistics from snowflake.com showed a clear upward trend.

Specifically, the graph below indicates that total anticipated visitors to the snowflake.com website increased 9.5% sequentially to 8.8 million in the fourth quarter.

Other points worth mentioning

Despite strong earnings numbers, the company posted a loss of $0.43 per share. However, this was a significant improvement from the previous year’s loss of $0.70 per share. Snowflake should continue to benefit from rapid revenue growth.

Snowflake is seeing significant adoption of its platform by existing customers. The company had 5,944 total customers at the end of the fourth quarter, with 184 generating more than $1 million in annual sales. Finally, Snowflake’s adjusted free cash flow climbed to $102 million in the fourth quarter, indicating that the company’s finances have improved significantly.

However, management expected sales to increase by only 66% for fiscal year 2023 compared to 103.5% for fiscal year 2022.

Although forecasts point to a deceleration in growth, Snowflake appears to be a fundamentally sound company that could be an excellent long-term growth stock to own.

The Taking of Wall Street

Wall Street analysts are cautiously bullish on Snowflake, with a Moderate Buy consensus rating based on 14 buys and 6 takes. Snowflake stock’s average forecast of $331.21 implies upside potential of around 58% from current levels for this stock.

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