Snowflake shares soar following revenue beat

Earnings

In this article

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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