3 Wild Metrics Highlight Snowflake's Staggering Momentum
Snowflake (NYSE: SNOW), the disruptive data cloud, saw its sky-high growth rates continue unabated again in fiscal Q2. Its top line grew 83% year over year to $497 million. Unlike some work-from-home companies like Zoom, Peloton, and Fastly, Snowflake's high growth rates haven't come back down to earth since 2020 and early 2021. Sure, there has been some slight moderation in the company's growth rate -- but it has been gradual.
To help investors appreciate just how impressive Snowflake's momentum is, they must go beyond the company's revenue growth rate to look at the strength in some of the key metrics driving this growth. Snowflake's net revenue retention rate, its growth in $1 million customers, and its new hires all highlight how this disruptive company is growing rapidly.
One of the most impressive aspects of Snowflake's growth is that much of it is coming from existing customers. The tech company's net revenue retention rate, which measures existing customers' spend with Snowflake over the trailing-12-month period compared to the period 12 months earlier, is a great measure of the utility customers are getting from Snowflake's data cloud. After all, they wouldn't be spending more if it wasn't providing value.
Source Fool.com