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Snowflake enhances data platform with new AI features

Published 11/12/2024, 09:16 AM
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BOZEMAN, Mont. - Snowflake Inc . (NYSE: NYSE:SNOW), a leader in cloud data warehousing and analytics services, has announced the general availability of several new features designed to simplify data management and bolster security for its enterprise customers. This announcement was made at Snowflake's annual developer conference, BUILD 2024.

The company revealed its Snowflake Open Catalog, now generally available, which supports the integration of new engines and the application of consistent governance controls, aiding enterprises in managing their evolving data architecture needs. Snowflake Open Catalog is built to work in tandem with the Snowflake Horizon Catalog, providing customers with flexibility and control over their data.

In addition to the Open Catalog, Snowflake introduced Document AI, a tool now available on AWS and Microsoft (NASDAQ:MSFT) Azure platforms that employs a large language model, Arctic-TILT, to extract valuable insights from unstructured data such as PDFs and other documents. This feature aims to help businesses analyze text-heavy content and recognize elements like logos and handwritten notes more effectively.

Snowflake also announced new threat prevention and security monitoring capabilities for the Snowflake Horizon Catalog. These enhancements include Leaked Password Protection, which automatically disables user passwords found on the dark web, and the upcoming introduction of Programmatic Access Tokens for secure API authentication.

Furthermore, Snowflake is improving its platform's economics with the introduction of Storage Lifecycle Policies in private preview, which will assist organizations in managing storage costs and compliance. The company continues to simplify migrations from legacy relational database management systems with added Views support in SnowConvert.

The Snowflake Trust Center is receiving an upgrade with the new Threat Intelligence Scanner Package, now generally available, that provides a Risky User View to identify and mitigate security risks. The Trust Center will also be expanded through custom scanner packages soon available on the Snowflake Marketplace from cybersecurity partners.

These announcements underscore Snowflake's commitment to providing a secure and flexible data management platform for enterprises, enabling them to harness the power of AI and accelerate value from their data.

This news is based on a press release statement from Snowflake Inc.

In other recent news, Snowflake Inc. reported a notable 30% year-over-year increase in product revenue, reaching $829 million for its second quarter of fiscal year 2025. Following this robust performance, the company raised its full-year product revenue outlook. In addition, Snowflake recently completed a significant $2.3 billion convertible debt offering. KeyBanc Capital Markets adjusted its outlook on Snowflake shares, reducing the price target to $150 while retaining an Overweight rating. This adjustment follows a comprehensive survey of Snowflake partners and customers. Analyst firm Monness Crespi Hardt upgraded Snowflake from Neutral to Buy, setting a new price target of $140.00. Other firms such as Truist Securities, Citi, Stifel, and TD Cowen maintained their Buy ratings, with price targets ranging from $165 to $210. These are the recent developments for Snowflake, indicating a continued commitment to improved execution and quicker product innovation.

InvestingPro Insights

As Snowflake Inc. (NYSE: SNOW) continues to innovate and expand its cloud data services, investors may be interested in some key financial metrics and insights provided by InvestingPro.

Snowflake's market capitalization stands at $41.4 billion, reflecting its significant presence in the cloud computing industry. The company's revenue growth remains strong, with a 31.21% increase over the last twelve months, reaching $3.21 billion. This aligns with Snowflake's continued product development and expansion of services announced at BUILD 2024.

However, profitability remains a challenge for Snowflake. An InvestingPro Tip notes that the company is not profitable over the last twelve months, with an operating income margin of -38.89%. Despite this, analysts predict that Snowflake will become profitable this year, which could be a positive sign for investors considering the company's growth trajectory and recent product announcements.

Another InvestingPro Tip highlights that Snowflake holds more cash than debt on its balance sheet. This strong financial position may provide the company with the flexibility to continue investing in innovative features like the Open Catalog and Document AI, potentially driving future growth.

For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Snowflake, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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