Snowflake ’fiscal 2024 ended on January 31,2024.
Asset structure analysis
Snowflake’s total assets were $8.2 billion at January 31, 2024, an increase of 6.5%, compared with $7.7 billion at January 31, 2023.
Cash and cash equivalents were $1.76 billion as of January 31, 2024, accounting for 21.5% of total assets.
Short-term investments were $2.08 billion as of January 31, 2024 , comprising about 25.4% of total assets.
Total current assets were $5.04 billion at January 31,2024, which consisting of 61.5% of total assets.
Long-term investments were $0.9 billion as of January 31, 2024, making up 11% of total assets.
Goodwill was $0.98 billion as of January 31, 2024, accounting for 12% of total assets.
Liquidity and solvency
Total liabilities were $2.73 billion as of January 31, 2024, but among total liabilities , the amount of deferred revenue, current was $2.2 billion as of January 31, 2024, which dose not need to be repaid.
The amount of total liabilities subtracting that of deferred revenue, current was $0.53 billion.
The adjust current ratio was 9.5, which is $5.05 billion/$0.53 billion.
Total liabilities were $3 billion as of January 31, 2024,.
The debt ratio was about 36.6% in fiscal 2024.
Given that deferred revenue, the actual debt was rather low.
In addition, the combined of cash, cash equivalents and short-term investment was $3.84 billion in fiscal 2024, which was more than $3 billion in total liabilities.
Snowflake’s balance sheet is very healthy.
The company had a great amount of deferred revenue, indicating that the company ‘s product is welcome or customer’s sunk cost is very great. In any case, many companies ‘s cash flow is very good as customers must pay bill in advance.
Profitability analysis
Snowflake’s revenue was $2.8 billion, $2 billion and $1.2 billion in fiscal 2024, fiscal 2023, and fiscal 2022, respectively.
Revenue in 2024 was up 40% year-on-year.
Revenue in 2023 was up 66.7% year-on-year.
The growth rate of revenue was very fast.
Speaking of net income , we are sad , because snowflake has been in loss.
Operating loss was $1.1 billion, $0.842 billion and $0.715 billion in 2024, 2023 and 2022, respectively.
Stock-based compensation is a important factor that leading to operating loss.
Stock-based compensation expenses were $1.17 billion, $0.861 billion and $0.605 billion in 2024, 2023 and 2022, respectively.
Stock-based compensation accounted for 41.8%, 42.1% and 59.6% in 2024,2023 and 2022, respectively.
We do not kown whether a lot of stock-based compensation affect the company’s valuation.
Cash flow analysis
Net cash provided by operating activities was $848 million, $545 million and $110 million in 2024, 2023 and 2022, respectively.
Snowflake’s cash flow was very strong.
Free cash flow was about $474.6 billion, $133.9 million and $56.5 million in 2024, 2023 and 2022, respectively.
The define of free cash flow exclude four accounts, which is purchases of property and equipment, capitalized internal-use software development costs, cash paid for business combinations and purchases of intangible assets.
Repurchases of common stock was $592 million in 2024.
Conclusion
The balance sheet was very healthy.
Operating income has been in loss.
The amount of stock-based compensation has been far more than that of repurchases of common stock over the three years.
The amount of stock compensation has been more than that of net cash provided by operating activities in the three years.
Now, Snowflake’s stock is $161.60 per share, which is equivalent to $53.97 billion in market cap.
Under stock-based compensation, investing value is very limited.
Disclaimer: The content is for reference only and does not constitute investment advice.
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