Snowflake Shares Surge on Profit and Sales Beat, Citing ‘Stabilizing’ Environment

GettyImages 1228547811 7804a4920d204b81976339b992779c80

GettyImages 1228547811 7804a4920d204b81976339b992779c80

Snowflake Shares Surge on Profit and Sales Beat, Citing ‘Stabilizing’ EnvironmentKey Takeaways

  • Snowflake said a broadly stabilizing macro environment helped the company post better-than-expected profit and sales.
  • The cloud data warehousing software maker also beat estimates for product revenue.
  • Snowflake’s sales guidance for the current quarter was above analysts’ estimates.

Snowflake (SNOW) shares rose close to 5% in early trading Thursday after reporting better-than-expected quarterly results and guidance as the market for its cloud data warehousing services improved.

The company posted a third quarter fiscal 2024 profit of $0.25 per share, up $0.11 from 2022 and well above estimates. Revenue rose 31.8% to $734.2 million, and product revenue jumped 34% to $698.5 million. They also beat forecasts.

Snowflake indicated that it had 436 customers with trailing 12-month product revenue of more than $1 million, and a net retention rate of 135%. The firm added that its performance obligations for the quarter came in at $3.7 billion, 23% higher than in 2022.

CEO Frank Slootman said the quarterly performance reflects “strong execution in a broadly stabilizing macro environment.”

Snowflake anticipates product sales in the current quarter to be in a range of $716 million to $721 million, more than anticipated.

Shares of Snowflake traded at their highest level since July following the news.

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