snowflake Shares of the data analytics software maker surged 19% in after-hours trading on Wednesday after the company reported third-quarter profit that beat expectations.
Here’s how the company performed compared to London Stock Exchange Group analysts’ expectations:
- Earnings per share: Adjusted 20 cents, expected 15 cents
- income: $942 million vs. $897 million expected
Snowflake’s revenue rose 28% annually in the quarter ended Oct. 31, according to one company. statement. The company’s net loss was $324.3 million, or 98 cents a share, widening from $214.3 million, or 65 cents a share, a year earlier.
Product revenue accounts for approximately 96% of total sales. Snowflake expects product revenue to reach $3.43 billion in fiscal 2025, representing growth of 29%. That’s higher than management’s forecast of $3.36 billion three months ago.
The full-year outlook also includes adjusted operating margin of 5%, up from August guidance of 3%.
Snowflake CEO Sridhar Ramaswamy told analysts on a conference call that the company is more focused on saving money.
“We’ve been creating centralized, more efficient teams for certain areas and eliminating redundant management, which allows us to make decisions faster,” he said.
But Chief Financial Officer Mike Scarpelli said the company was not making large-scale layoffs.
Snowflake had 10,618 customers as of the end of October, having added 369 customers last quarter. Analysts polled by StreetAccount expected 10,601 customers.
While the U.S. government currently represents only a small part of Snowflake’s business, Scarpelli said there are still 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 few years,” Scarpelli said. September, Snowflake declare It acquires Night Shift Development, a company targeting the US public sector
Snowflake has been competing with cloud providers for years, such as Amazon and Microsoftbut they are also key partners in providing underlying computing resources to the company.
“Through our partnership with AWS, we have booked over $3.9 billion in the past four quarters,” Ramaswamy said.
Also on Wednesday, Snowflake announced multi-year partnership with humans, Amazon– Supported AI startups and OpenAI competitors. It also said it has agreed to acquire startups davolo The amount was undisclosed.
Snowflake’s shares were down 35% so far in 2024 as of Wednesday’s close, while the S&P 500 was up 24%.
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