Let’s dig into the relative performance of Snowflake (NYSE:SNOW) and its peers as we unravel the now-completed Q1 data storage earnings season.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.
Luckily, data storage stocks have performed well with share prices up 10.1% on average since the latest earnings results.
Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $1.04 billion, up 25.7% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Snowflake scored the fastest revenue growth of the whole group. The company added 26 enterprise customers paying more than $1 million annually to reach a total of 606. Unsurprisingly, the stock is up 18.4% since reporting and currently trades at $212.03.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it’s free.
Best Q1: Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $275 million, up 23.2% year on year, outperforming analysts’ expectations by 4.8%. The business had a very strong quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Commvault Systems pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $170.85.
Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: DigitalOcean (NYSE:DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $210.7 million, up 14.1% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly.
DigitalOcean delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 10.6% since the results and currently trades at $29.30.
Read our full analysis of DigitalOcean’s results here.
MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $549 million, up 21.9% year on year. This number beat analysts’ expectations by 4.1%. It was a very strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
The company added 110 enterprise customers paying more than $100,000 annually to reach a total of 2,506. The stock is up 9.5% since reporting and currently trades at $218.80.
Read our full, actionable report on MongoDB here, it’s free.
Couchbase (NASDAQ:BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $56.52 million, up 10.1% year on year. This print topped analysts’ expectations by 1.7%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
Couchbase had the slowest revenue growth among its peers. The stock is up 30.2% since reporting and currently trades at $24.16.
Read our full, actionable report on Couchbase here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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