Snowflake ( SNOW Quick Quote SNOW - Free Report) recently announced its partnership with Blue Yonder, a digital supply-chain and omni-channel commerce fulfillment company, to transform access to contradictory data for supply-chain management. Powered by Snowflake, Blue Yonder’s Luminate Platform is an end-to-end supply-chain solution, which allows retailers, manufacturers and third-party logistics providers (3PLSs) to predict, prevent and resolve disruptions across their workflow for mitigating risks and tackling supply-chain constraints. Per the deal, Snowflake will be integrating with Blue Yonder to reduce and ultimately eliminate data silos in the industry. The partnership will also help meet the diverse requirements of Luminate customers. As part of the partnership, Blue Yonder will be leveraging Snowflake’s newly-launched Retail Data Cloud The new cloud solution by Snowflake unites its data platform, partner delivered solutions and industry-specific datasets to help companies in the retail industry provide improved customer experiences and optimize operations for retailers Snowflake’s Retail-Based Solutions to Aid Growth
The retail industry is witnessing a global shift as to how consumers, brands and retailers interact. The industry is constantly reeling under the changing dynamics due to uncertainty created by the change in consumer preferences, party affected by the pandemic. The customer expectations, accelerated digitization and e-commerce, and transformation across the supply chain put immense pressure on the retail organizations
This created a dearth of common data-sharing models and thus, the industry overall cannot capitalize on the available data and insights. To mitigate the problem, Snowflake has been building its portfolio of cloud-solutions for a while to manage the data boom, and incorporating AI, ML and analytics to bring innovation across industries. Snowflake announced that it extended its relationship with Amazon’s ( AMZN Quick Quote AMZN - Free Report) cloud division Amazon Web Services, to improve demand forecasting and delivery for the retail and consumer packaged goods (CPG) industries. The latest development provides customers with the ability to receive Amazon purchase order data. This data can then be leveraged to forecast product demand, which will be generated by Amazon Forecast along with Snowflake’s Retail Data Cloud.
Separately, Retail Data Cloud will provide retailers, manufacturers, consumer packaged goods (CPG) vendors, distributors and technology providers with solutions to leverage their own data and also access new data to seamlessly collaborate across the retail industry.
Such platform enhancements helped Snowflake attract new customers, specifically in retail, healthcare, technology and financial services during fiscal 2022 and positively impact revenues in the fourth quarter of fiscal 2022. In the fiscal 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 last fiscal year’s comparable quarter. In the fiscal fourth quarter, revenues of $383.8 million beat the consensus mark 3.20% and jumped 117% year over year. Owing to rapid customer acquisition and an increasing net revenue retention rate, Snowflake expects revenues for first-quarter fiscal 2023 in the range of $383-$388 million Shares of Snowflake have plunged 30.4% year to date compared with the Zacks Internet Software industry’s decline of 28%. The Computer & Technology sector has dropped 9.6% during the same period. Zacks Rank and Stocks to Consider
Currently, Snowflake has a Zacks Rank #3 (Hold).
Two better-ranked stocks in the Zacks Computer &Technology sector are
Apple ( AAPL Quick Quote AAPL - Free Report) and C3.ai ( AI Quick Quote AI - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here In the year-to-date period, Apple’s shares have inched up 0.9% against the Zacks Computer - Mini computers’ dip of 0.9% and the Computer & Technology sector’s decline of 9.6%. In the year-to-date period, C3’s shares have dropped 22.5% compared with the Zacks Computers - IT Services’ fall of 14.2% and the Computer & Technology sector’s decline of 9.6%.