- Analysts were impressed by Snowflake Inc's (NYSE:SNOW) Summit user conference in Las Vegas, which included an Investor Day briefing.
- Piper Sandler analyst Brent A. Bracelin was impressed by Snowflake Summit's quality and caliber of attendees, which included many Fortune 100 customers, and the broadening number of use cases for SNOW.
- Based on his customer conversations, the primary investor pushback and fear that a consumption-driven model coupled with cost optimization efforts could materially erode growth potential proved to be an overly bearish view.
- He recommended large-cap growth investors take advantage of the cost optimization overhang and continue adding to positions in SNOW.
- He saw multi-billion growth potential, outstanding leadership, incredible technology, and a disciplined operating model in SNOW that is profitable and generates positive free cash flow.
- Rosenblatt analyst Blair Abernethy was impressed by the broad-based and rapidly growing customer interest despite near-term macro concerns.
- Abernethy noted SNOW was not letting up on its rapid pace of innovation, with an increased focus on data monetization, platform automation, and native data-driven application development.
- Snowflake reiterated its FY29 objectives of Product Revenue of $10 billion.
- His revenue forecast of $1.89 billion in FY23 and 20% operating margins may prove somewhat conservative.
- He expects Snowflake to achieve his 66% revenue growth expectation for this year.
- Price Action: SNOW shares traded lower by 5% at $116.37 on the last check Thursday.
