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Earnings Results: Snowflake stock soars 18% after large revenue beat

Shares of Snowflake Inc. surged in Wednesday’s aftermarket action after the data-software company easily topped revenue expectations for its latest quarter.

The company posted a fiscal second-quarter net loss of $223 million, or 70 cents a share, whereas it lost $190 million, or 64 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting Snowflake

to post a per-share GAAP loss of 56 cents.

Snowflake’s revenue rose to $497 million from $272 million, while the FactSet consensus was for $467 million. The company logged $466 million in product revenue, above the $439 million that analysts had been modeling.

The company disclosed that it had 6,808 total customers, including 246 customers with trailing 12-month product revenue upwards of $1 million.

The stock was up more than 16% in after-hours trading.

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

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

The earnings come as several analysts have taken more cautious views of Snowflake’s stock this month, with at least two downgrading the shares amid concerns about competition from privately held Databricks as well as the potential for macroeconomic pressure to impact customer spending.

Analysts were more upbeat earlier in the summer, as at least three upgraded Snowflake shares during the month of June.

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