Snowflake Stock Wavers As Analysts Mull Revenue Beat, Growth

Snowflake (SNOW) late Wednesday reported second-quarter revenue that topped estimates, while its October-quarter guidance also came in above Wall Street expectations. Snowflake stock wavered on the news as analysts mulled the size of the beat.


San Mateo, Calif.-based Snowflake said July-quarter revenue jumped 104% to $272.2 million from a year earlier. Analysts had estimated Snowflake revenue of $256.5 million.

Snowflake sales soared 110% in the April quarter and 117% in the January quarter.

The provider of cloud-based data analytics software said product revenue rose 103% to $254.6 million vs. estimates of $240 million.

In addition, Snowflake said it now has 116 customers with “trailing 12-month product revenue greater than $1 million,” up from 104 such customers as of April 30.

Snowflake Stock: Product Revenue Guidance

Snowflake stock analysts called for the company to report an adjusted loss of 15 cents. The company does not break out non-GAAP earnings in its earnings releases.

For the October quarter, Snowflake forecast product revenue in a range of $280 million to $285 million, above estimates of $270.5 million.

Snowflake stock wavered, moving up or down a fraction, in after-hours trading on the stock market today.

Competition with cloud computing giants has been one issue for Snowflake stock.

Further, the Snowflake stock initial public offering on Sept. 16 raised $3.4 billion and set a record as the largest U.S. software IPO ever. Heading into the earnings report, the software maker had a Relative Strength Rating of only 58 out of a best-possible 99, according to IBD Stock Check-up.

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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists, find issues like Snowflake stock that may be nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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Harry Byrne

Harry Byrne

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