Earnings

Snowflake shares soar following revenue beat

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Frank Slootman, CEO of Snowflake, on the day of its 2020 IPO, Sept. 16th, 2020.
CNBC

Shares of the cloud data platform provider Snowflake popped more than 17% in extended trading on Wednesday after the company released second-quarter earnings that beat analysts’ revenue expectations.

Here’s how the company did:

  • EPS: Loss of 70 cents
  • Revenue: $497 million vs. $467 million expected, according to Refinitiv

The company’s revenue for the quarter ended July 31 grew 83% year over year to $497 million, a slight downtick from last quarter’s 85% growth. The largest part of revenue, product revenue ,also grew 83% year over year to $466.3 million. Product revenue is a key metric for Snowflake since it recognizes revenue based on platform consumption.

Snowflake said it anticipates product revenue will be between $500 and $505 million in its third quarter, and between $1.91 billion and $1.92 billion for the full year. Product gross profit margins, operating income margins and adjusted free cash flow are expected to be 75%, 2% and 17% respectively for the full year.

Snowflake said it had 6,808 customers in the quarter, and that was above the FactSet consensus estimate of 6,739, acording to StreetAccount.

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