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Don't remind me again today

The last quarter of Snowflake? Impressive. But watch out for the stocks. 🚀



The numbers for the second fiscal quarter? Not bad. Accelerated growth. Customer metrics improving. Product revenues rose 32% year-over-year. $1.09 billion. Revenue retention reached 125%. Big clients? Even better. 🔥

But profitability... that's where things get complicated. GAAP losses are still enormous. 298 million dollars vanished in the quarter. That's not a small amount.

The valuation? Through the roof. 77 billion dollars in market capitalization. About 19 times the sales. Alphabet and Microsoft fall short. 🌕

The business of Snowflake has its charm. Expanding data cloud. Fat clients growing. But the current price? It seems to leave little margin. GAAP losses, dilution from stock compensation... it makes one think. And that consumption model? It can be volatile with economic cycles.

What would need to happen to change this? Maybe a sustained acceleration. Improvements in GAAP profitability. More free cash flow. In the meantime? Patience might be the best strategy for stakeholders. 💰
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