Snowflake stock analysis #shorts

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Cloud data company Snowflake just reported a strong Q3.

Revenue was up 67% year over year to 557 million and adjusted free cash flow more than tripled to 65 million. That means annual revenue will be just short of two billion.

But, Snowflake stock is still expensive. With a 44.6 billion enterprise value, the company is valued at 24 times this year's revenue.

And, when you account for 780 million of stock based compensation, actual free cash flow AND net income are both negative.

There’s no doubt, Snowflake is a high quality business.

A revenue retention rate of 165% is best of breed, even if it is down from its peak.

And total customers continue to climb, increasing 34% year over year.

But how much growth is baked in?

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