Snowflake stock soars over 17% after large revenue beat

After Wednesday’s aftermarket action in Snowflake Inc. shares, the data-software company easily topped revenue expectations for its latest quarter.

The company posted a net loss of $223 million, or 70 cents per share, in the fiscal second quarter, compared to a loss of $190 million, or 64 cents per share, in the year-ago quarter. Analysts tracked by FactSet were expecting snowflake snow,
to post a GAAP loss per share of 56 cents.

Snowflake’s revenue rose from $272 million to $497 million, while FactSet’s agreed-upon was $467 million. The company logged $466 million in product revenue, which was higher than the $439 million that analysts had modeled.

The company disclosed that it had a total of 6,808 customers, including 246 customers with 12 months of product revenues exceeding $1 million.

Chief executive Frank Slotman highlighted that Snowflake operates under a consumption model rather than a software-as-a-service (SaaS) model, meaning how much of Snowflake is “throttled” after signing a customer contract. ” can do.

“We think that’s an advantage in the kind of times we’re living in,” he said on the company’s earnings call.

The stock was up more than 17% in after-hours trading.

For the fiscal third quarter, Snowflake executives expect $500 million to $505 million in product revenue, while the FactSet consensus called for $502 million.

Chief Financial Officer Mike Scarpelli said on the company’s earnings call that amid macroeconomic uncertainty, “the guidance is prudent that we lay out.”

Looking at the full fiscal year, Snowflake’s management anticipates $1.905 billion to $1.915 billion in product revenue, compared to analysts forecasting $1.897 billion. The company’s prior outlook was $1.885 billion to $1.900 billion.

“We believe a conservative approach has been rewarded in this tape, and this is reflected in the stock in the aftermarket,” Evercore ISI analyst Kirk Mattern wrote after the report.

The earnings come as many analysts have taken a more cautious view of Snowflake’s stock this month, amid competition from privately held Databricks as well as the potential for macroeconomic pressure to impact customer spending. With at least two downgradings.

Analysts were more upbeat earlier in the summer, as at least three snowflake stocks advanced in the month of June.


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