Snowflake exceeded analysts’ expectations for earnings and revenue, leading to a rise in its share price after the market closed.
The company, which provides cloud-based data platforms to businesses, reported adjusted earnings of 24 cents per share. This was higher than the expected 21 cents. Quarterly revenue exceeded the $1 billion mark for the first time, coming in at $1.04 billion, up 26% compared to a year earlier. Analysts had expected $1.01 billion.
Product revenue, derived from customers’ use of computing power, storage, and data bandwidth, came in at nearly $997 million, also up 26% from a year ago and above the forecast of $962 million. Although Snowflake is profitable after adjustments, the company still posted a net loss of $429.9 million.
CEO Sridhar Ramaswamy said the company remains focused on ease of use and reliability for business applications. He emphasized that there are significant opportunities to deliver value across the entire data lifecycle.
For the current quarter, Snowflake is targeting product revenue of between $1.035 billion and $1.04 billion, which would again be a record. Analysts had previously expected an average of $1.02 billion.
On an annual basis, the company forecasts revenue of $4.325 billion, again above the average expectation of $4.28 billion. This would represent annual growth of 25%.
Snowflake is also making progress at the product level. The company announced that it will now offer full support for the popular Apache Iceberg format. This will enable companies to work with Iceberg tables on the Snowflake platform without having to move data. This is an important step for AI applications and advanced data analysis.
Snowflake receives government certification
In addition, Snowflake obtained important certification in April to operate within the US government sector. Thanks to the Impact Level 5 approval from the US Department of Defense, the platform can be used by the army, navy, air force, and space division, as well as affiliated parties.
All in all, this strengthens Snowflake’s position, which is also appreciated by investors. The stock rose more than 7% in after-hours trading today. Since the beginning of the year, the share price has risen 16%, while the broader S&P 500 has remained virtually unchanged.