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Snowflake shares pop 19% on earnings and revenue beat

Snowflake reported better-than-expected results on the top and bottom lines. Read more...

The New York Stock Exchange welcomes Snowflake to usher in the first day of winter on Dec. 21, 2021.

NYSE

Snowflake shares on Wednesday spiked 19% in extended trading after the data analytics software maker reported fiscal third-quarter earnings that beat estimates.

Here’s how the company did, compared to LSEG analyst expectations:

  • Earnings per share: 20 cents, adjusted vs. 15 cents expected
  • Revenue: $942 million vs. $897 million expected

Snowflake’s total revenue rose 28% year over year in the quarter, which ended on Oct. 31, according to a statement. The company’s net loss of $324.3 million, or 98 cents per share, widened from $214.3 million, or 65 cents per share, in the same quarter a year earlier.

Product revenue, at $900.3 million, represented around 96% of total revenue. Snowflake called for $3.43 billion in fiscal 2025 product revenue, implying 29% growth. That’s up from the $3.36 billion forecast management gave three months ago, which suggested 26% growth.

The full-year view also includes an adjusted operating margin of 5%, up from the 3% guidance in August.

Snowflake had 10,618 customers at the end of October, having added 369 in the fiscal third quarter. Analysts polled by StreetAccount had expected 10,601.

Separately, Snowflake announced a multi-year partnership with Anthropic, the Amazon-backed artificial intelligence startup and OpenAI competitor. And it said it had agreed to buy startup Datavolo for undisclosed terms.

As of Wednesday’s close, the stock was down 35% so far in 2024, while the S&P 500 index was up 24%.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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