Snowflake beat on every metric in Q3, says Loop Capital

Loop Capital keeps a Buy rating and $185 price target on Snowflake (SNOW) after its Q3 results. The company beat on virtually every metric tracked as product revenue of $900M was 5% ahead of its Street-high estimate, RPO – remaining performance obligations – accelerated 54% y/y, 18 new Forbes 2K customers were added, and non-GAAP operating margins of 6.3% topped Loop’s expectation by 280 bps, the analyst tells investors in a research note. Snowflake is standing in front of several growth catalysts, including a strong product cycle that drives more workloads on the platform, recent go-to-market changes designed to accelerate consumption and growth, and Generative AI tailwinds, the firm adds.