Frank Slootman, CEO of Snowflake, on the day of the 2020 IPO, September 16, 2020.
Shares of cloud computing platform provider Snowflake rose more than 17% in extended trading on Wednesday after the company posted second-quarter results that beat analysts’ revenue expectations.
Here̵[ads1]7;s how the company did it:
- EPS: Loss of 70 øre
- Income: 497 million dollars against the expected 467 million dollars, according to Refinitiv
The company’s revenue for the quarter ended July 31 grew 83% year over year to $497 million, down slightly from the previous quarter’s 85% growth. The largest portion of revenue, product revenue, also grew 83% year-over-year to $466.3 million. Product revenue is a key metric for Snowflake as it recognizes revenue based on platform consumption.
Snowflake said it expects product revenue to be between $500 million and $505 million in the 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, according to StreetAccount.