Snowflake (SNOW) shares fell Thursday morning after the company reported second-quarter results that beat estimates on revenue and earnings and raised its full-year revenue forecast. Investors appear concerned that the company could fall behind competitors when it comes to AI.
Brent Thill, Senior Analyst at Jefferies, joins Catalysts to provide insights into the company’s recent performance and potential future prospects.
Thill explains that this is a transition year for the company, with a new CEO and an expanded business model, so it may take some time for the company to find its feet.
“But if you look at the future indicators of the health of the business, that’s basically the backlog. So the backlog is up 40%. It’s accelerated. Again, that’s a future indicator of health. So if the RPO numbers go up, the reported backlog goes up, that means the reported revenue should track that number over time. So I think going forward, that’s going to be a big transition year; 2024 is what we call a pit stop,” Thill says.
Watch the video above to learn why Thill thinks the stock’s valuation is its “biggest risk.”
Click here to watch the full episode of Catalysts for more expert insights and information on current market events.
This article was written by Nicolas Jacobino
