What do visits to the Snowflake website tell us about its fourth quarter earnings picture?
Snowflake (SNOW) will release its financial results for the fourth fiscal quarter of 2022 on March 2.
The company is a cloud-based data platform that provides data scientists and business analysts with machine learning technologies.
Tracking user visits to the Snowflake website is crucial to gauge demand for its cloud computing services. For Snowflake, more monthly visits can mean more new customers and higher product revenue, and vice versa.
So, to get a better idea of the company’s current status, we dug into Snowflake’s monthly user data, using TipRanks’ new online tool, ahead of the fourth quarter print.
Snowflake monthly user showed a positive trend
We discovered through the tool that overall predicted visits to the Snowflake website increased in Q4. Total expected worldwide visits to snowflake.com increased 9.5% sequentially from the third quarter.
Notably, a large number of businesses are turning to cloud computing services due to the growing digital revolution. The increase in monthly visits suggests strong demand for Snowflake’s cloud services, which could translate to higher revenue growth in the yet-to-be-released quarter. Additionally, Snowflake’s key metrics, such as total customers, may have increased in the fourth quarter, due to its growing monthly user base.
However, according to TipRanks’ new methodology, visits to the snowflake.com website fell 0.15% year-over-year to 8.8 million in Q4 2022 compared to Q4 2021.
The year-over-year decline in website traffic could be attributed to fierce competition from large-scale cloud providers, traditional vendors and new market entrants.
The Taking of Wall Street
Wall Street analysts are cautiously bullish on Snowflake, with a Moderate Buy consensus rating based on 17 buys and 6 takes. The average forecast for the Snowflake stock of $388.36 implies an upside potential of around 46.2% from current levels for this stock.
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