Q2 Earnings: Snowflake reported second-quarter revenue of $868.823 million, beating the consensus estimate of $849.704 million, according to Benzinga Pro.
The data cloud company reported adjusted earnings of 18 cents per share, beating analyst estimates of 16 cents per share.
Product revenue came in at $829.3 million, up 30% year-over-year.
Snowflake said it ended the quarter with 510 customers with trailing 12-month product revenue greater than $1 million.
“The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products.
Outlook: Snowflake sees third-quarter product revenue in the range of $850 million to $855 million, up approximately 22% on a year-over-year basis.
The company also raised its full-year product revenue expectations.
Snowflake now expects full-year product revenue of $3.356 billion, up 26% year-over-year.
Following Wednesday’s market close, Snowflake Inc. (SNOW) released second-quarter financial results that exceeded analyst expectations. Take a look at the main points of the quarter.
Q2 Earnings: Snowflake exceeded Benzinga Pro’s consensus estimate of $849.704 million by reporting second-quarter revenue of $868.823 million.
Analyst estimates of 16 cents per share were surpassed by the data cloud company’s adjusted earnings of 18 cents.
Year-over-year, total revenue increased by 29%. Revenue from products was $829.3 million, a 30% increase over the previous year. During the quarter, the net revenue retention rate was 127%.
There were $5.2 billion in outstanding performance obligations, an increase of 48% from the previous year. According to Snowflake, it had 510 clients at the end of the quarter with trailing 12-month product revenue of more than $1 million.
“Our new AI products are gaining great traction in their early stages, and the quarter was characterized by innovation and product delivery.”. We have a tremendous opportunity to provide our customers with even more value in the future thanks to our platform, the network effect of cooperation, and our AI innovations, stated Sridhar Ramaswamy, CEO of Snowflake.
Check This Out: Fed Minutes Reveal ‘Plausible Case’ For Interest Rate Cut As Policymakers Cheer Inflation Progress.
By extending the program’s duration through March 2027, the board of Snowflake approved an additional $2.05 billion for share repurchases. As of July 31, the company reported that $491.9 million was still available for buyback.
Perspective: According to Snowflake, product revenue for the third quarter will be between $850 million and $855 million, representing an increase of roughly 22% year over year.
Additionally, the company increased its forecast for product revenue for the entire year. Now, up 26% from the previous year, Snowflake projects $3.356 billion in product revenue for the entire year.
For a further discussion of its quarterly performance, management will hold a conference call at 5 p.m. M. EST.
SNOW Price Action: According to Benzinga Pro, Snowflake shares were down 6.71% after hours on Wednesday, trading at $126.
Picture courtesy of Shutterstock.
View Next:.
