Snowflake, Salesforce, and UiPath Show Growth Potential

A report highlights the growth trajectories of Snowflake, Salesforce, and UiPath, emphasizing their revenue gains and free cash flow improvements. Investors may find opportunities despite recent stock downturns, indicating long-term potential in the tech sector.

Date: 15-09-2024

AI Rating: 7

The report showcases three technology stocks: Snowflake, Salesforce, and UiPath, all of which present compelling growth narratives for investors.

Snowflake (NYSE: SNOW)

Snowflake experienced a significant drop in share price following a weak sales outlook for fiscal 2025 along with its CEO's retirement. However, the report indicates that the company has shown impressive revenue growth, doubling from $1.2 billion in fiscal 2022 to $2.8 billion in fiscal 2024. Their gross profit also increased from $760.9 million to $1.9 billion, with a gross margin rise from 62.4% to 68%. Moreover, free cash flow improved dramatically from $81.1 million to $778.9 million during the same period.

Salesforce (NYSE: CRM)

Salesforce's performance is illustrated through its total revenue climbing from $26.5 billion in fiscal 2022 to $34.9 billion in fiscal 2024. Operating income surged from $548 million to $5 billion, and net income increased from $1.4 billion to $4.1 billion, showcasing robust earnings growth. Free cash flow also saw an increase from $5.3 billion to $9.5 billion.

UiPath (NYSE: PATH)

UiPath witnessed a share price decline of nearly 50% year to date due to a change in leadership but has nonetheless shown revenue growth from $892.3 million to $1.3 billion, and gross profit rose from $723.4 million to $1.1 billion from fiscal 2022 to fiscal 2024. Free cash flow turned positive at $291.7 million in fiscal 2024.

Overall, the report suggests that while these companies have faced short-term volatility, their long-term fundamentals indicate positive trajectories in revenue growth and free cash flow, which could appeal to growth-oriented investors.

Stocks: SNOW CRM PATH