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Snowflake's (SNOW) New Cloud Solution to Improve Healthcare

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Snowflake (SNOW - Free Report) has announced the launch of Healthcare & Life Sciences Data Cloud to help companies in the healthcare industry provide improved patient outcomes and accelerate clinical research.

The new cloud solution by Snowflake is expected to help organisations securely centralize data and exchange sensitive data on a large scale.

It also provides a single integrated cross cloud data platform, eliminating technical institutional data silos without compromising on data security.

Snowflake Rides on Solid Demand in Healthcare Industry

The healthcare industry is constantly reeling under the changing dynamics due to uncertainty created by the pandemic. The space navigates various regulations and is widely dependent on legacy systems amid stringent compliance requirements.

This created a lack of common data-sharing models and thus, the industry as a whole cannot capitalize on available data and insights.

Snowflake’s new Healthcare & Life Sciences data cloud platform will help solve these issues by managing the ever-increasing health data volumes, and bringing artificial intelligence and analytics to medical innovation.

Such platform enhancements helped Snowflake attract new customers, specifically in the healthcare, technology and financial services in fiscal 2022 and positively impacted revenues in the fourth quarter of fiscal 2022.

In the fourth quarter, financial services, retail, advertising and media, healthcare and technology represented 85% of net new bookings. In the reported quarter, Snowflake closed seven new deals worth $30 million or more, up from just one in the year-ago quarter.

Large deal volumes also continue to increase in these industries.

In the fourth quarter, revenues of $383.8 million beat the consensus mark by 3.20% and jumped 117% year over year.

Owing to rapid customer acquisition and increasing net revenue retention rate, SNOW expects revenues in the range of $383-$388 million.

The currently Zacks Rank #3 (Hold) shares have fallen 34.2% year to date compared with the Zacks Internet Software industry’s decline of 29.5%. The Computer & Technology sector has tumbled 12.3% during the same period.

Snowflake’s Key Partner Offers Solutions in HealthCare Industry

Snowflake’s one of the key technology partners is Amazon’s (AMZN - Free Report) Amazon Web Services (AWS).

AWS helps Snowflake provide seamless integration between different cloud platforms to help customers store and analyse data in the Healthcare and Life sciences industry.

Consulting and services partners like Cognizant (CTSH - Free Report) build solutions on Snowflake platforms.

Cognizant aids clients in healthcare industry to be data driven. CTSH helps healthcare industry partners collect, store and analyse data in a time-efficient way.

Stock to Consider

While Snowflake is a good stock to retain in the portfolio, you can consider a better-ranked stock to buy to increase profits.

In the broader Computer and technology sector, Advanced Micro Devices (AMD - Free Report) is another stock to consider.

AMD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the year-to-date period, AMD shares have declined 21.1% compared with the Zacks Electronics - Semiconductors’ fall of 12.2%.