Snowflake Inc., a software company, experienced an impressive surge in stock value, increasing over 8% in after-hours trading on Wednesday. This remarkable performance comes on the heels of the company’s optimistic financial results and forecast.
In the fiscal third quarter, Snowflake reported a net loss of $214 million or 65 cents per share. This compares favorably to a loss of $201 million or 63 cents per share in the same period last year. When adjusted for various factors, Snowflake’s earnings per share reached 25 cents, a significant improvement from 11 cents the previous year. Analysts from FactSet had projected earnings of 16 cents per share.
The company’s revenue also saw significant growth, with figures reaching $734 million, up from $557 million. The FactSet consensus had estimated revenue to be around $714 million. Out of the total revenue, product revenue stood at $698 million, surpassing analysts’ expectations of $669 million.
Frank Slootman, Snowflake’s Chief Executive, expressed satisfaction with these results, stating, “These results reflect strong execution in a broadly stabilizing macro environment.”
Snowflake’s remaining performance obligations for the latest quarter totaled $3.7 billion, representing a 23% increase compared to the previous year. Additionally, the company achieved a net revenue retention rate of 135%.
Looking ahead to the fiscal fourth quarter, Snowflake is anticipating product revenue ranging between $716 million and $721 million. This projection exceeds the FactSet consensus of $696 million in product revenue.