Earnings Calendar (19May25)
I am interested in the earnings of Zoom, Snowflake, Target, Lowe’s, WIX and Palo Alto.
Have we considered Snowflake?
The stock price grew 13.1% from a year ago. The Technical Analysis recommends a “Strong Buy” rating, and the Analysts’ Sentiment has a “Buy” rating. The price target is 200.82 with an upside of 9.69%.
Revenue
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Growth Trend: Snowflake's revenue has grown dramatically, increasing from $97 million in 2019 to $3.626 billion in 2025. The 7-year compound annual growth rate (CAGR) for revenue is not explicitly provided but can be inferred as substantial (approximately 83% CAGR based on the data).
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Key Milestones: Revenue growth was exceptionally strong, with increases of 173.9% in 2020, 123.6% in 2021, 106.0% in 2022, 69.4% in 2023, 35.9% in 2024, and 29.2% in 2025, reflecting rapid adoption of its cloud data platform. I have some concerns about falling revenue.
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Competitive Advantage: Snowflake’s explosive revenue growth underscores its leadership in the cloud data platform market, benefiting from the shift to cloud computing and its ability to serve enterprises across multiple cloud providers (AWS, Azure, Google Cloud).
Operating Profit
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Growth Trend: Operating profit has remained negative, worsening from a loss of -$185 million in 2019 to a loss of -$1.456 billion in 2025. The operating margin has improved slightly, from -191.9% in 2019 to -40.2% in 2025.
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Competitive Advantage: Snowflake’s persistent operating losses reflect its focus on growth over profitability, a common strategy for high-growth tech companies. Its improving margin suggests progress toward efficiency, though profitability remains a future goal. This is a red flag for me when increasing revenue correlates with increasing operating profit.
Earnings Per Share (EPS)
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Growth Trend: EPS has remained negative, worsening from -$0.75 in 2019 to -$3.86 in 2025. Growth rates show volatility, with declines like -95.7% in 2020, -160.6% in 2021, and -51.4% in 2025, reflecting ongoing, increasing losses.
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Volatility: EPS has consistently deteriorated, driven by increased operating losses and share dilution as Snowflake invests heavily in growth.
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This is a concern as the company continues to bleed losses. With increasing revenue, the losses continue to grow. There is limited optimism for a turnaround.
Price-to-Earnings (P/E) Ratio
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Valuation: The P/E ratio is negative at -47.6, reflecting Snowflake’s ongoing losses and the market’s focus on its growth potential rather than current earnings.
Free Cash Flow (FCF)
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Growth Trend: The EV/FCF ratio is 64.4, indicating a high valuation relative to free cash flow, but the screenshot does not provide a specific FCF CAGR. The improving operating losses suggest progress toward better cash flow generation.
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Competitive Advantage: Snowflake’s improving financials suggest it is moving toward stronger cash flow generation, which supports its growth initiatives, such as expanding its cloud data platform and customer base.
The EPS and revenue forecast are 0.211 and $1.01B. It seems that Snowflake is on its way to breakeven. Let us monitor.
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