Snowflake shares rise on earnings pace
Frank Slootman, CEO of Snowflake, on the day of the 2020 IPO, September 16, 2020.
CNBC
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.
