Snowflake Shares surged 30 percent on Thursday morning, on pace for its best day in 2020 since the company went public in 2020, after the data analytics software maker reported fiscal third-quarter earnings that Beat estimates.
How did the company compare to LSEG analysts’ expectations:
- Earnings per share: 20 cents, adjusted vs. 15 cents expected
- Income: $942 million vs. $897 million expected
According to a report, Snowflake’s revenue rose 28 percent year-over-year in the quarter ended Oct. 31. statement. The company’s net loss was $324.3 million, or 98 cents per share, up from $214.3 million, or 65 cents per share, in the same quarter a year ago.
Product revenue accounts for approximately 96 percent of total sales. Snowflake calls for $3.43 billion in fiscal 2025 product revenue, up 29 percent. That’s higher than management’s forecast of $3.36 billion. Three months ago.
The full-year view also includes an adjusted operating margin of 5%, up from 3% guidance in August.
CEO Sridhar Ramaswamy told analysts on a conference call that Snowflake is focusing more on saving money.
“We are creating centralized, more efficient teams for certain areas and removing redundant administrative layers, which enables us to make faster decisions,” he said.
Chief Financial Officer Mike Scarpelli said the company is not conducting a major round of layoffs.
Snowflake had 10,618 users at the end of October, up 369 from the most recent quarter. Analysts polled by StreetAccount had expected 10,601 users.
While the U.S. government is a very small part of Snowflake’s business today, Scarpelli said there are opportunities for growth.
“We feel good about what we’re doing, and we think there’s a lot of upside in the federal space over the next couple of years,” Scarpelli said. In September, Snowflake announced It had acquired Nightshift Development, a company targeting the public sector in the US.
For years, Snowflake has competed with cloud providers such as Amazon And Microsoftbut they are also key partners that provide the company with basic computing resources.
“Through our collaboration with AWS, we’ve booked more than $3.9 billion over the past four quarters,” said Ramaswamy.
Also on Wednesday, Snowflake announced. A multi-year partnership with anthropic, AmazonArtificial intelligence-backed startups and OpenAI competitors. He also said that he has agreed to buy the startup. Datalog for an undisclosed sum.
As of 11:10 a.m. Thursday, Snowflake’s stock is up 30%, while the S&P 500 index is up 0.19%.
This is breaking news. Please check back for updates.
