Analyst Note| Julie Bhusal Sharma |
Snowflake’s second quarter was one characterized by strong execution to fulfill enterprises’ long-awaited demands for an interoperable data lake and data warehouse--and momentum on indicative data points of the company’s future--such as net new customer growth and net revenue retention rates. Considerable customer count growth over prior periods pushed revenue to increase by 104% year over year, as large customers can take nine to 12 months before consuming on the Snowflake platform. The firm’s net retention rate increased sequentially to a spectacular 169% from 168% in the quarter. While GAAP EPS came under our expectations and the market’s, according to FactSet consensus, a boost in outlook made up for the miss.