Snowflake
shares were gaining ground Wednesday after the cloud data warehouse software company posted better-than-expected results for the quarter ended Oct. 31.
The strong quarter from the closely watched company is likely to be seen as a sign of strength for the cloud computing market.
In late trading, Snowflake shares were 6.9% higher at $187.32. Shares of other cloud plays, including
MongoDB
and
Datadog,
were also trading higher.
For the quarter, Snowflake reported revenue of $734.2 million, up 32% from a year ago, and ahead of the Street consensus forecast, as tracked by
FactSet,
of $714 million. Product revenue was $698.5 million, up 34%, and above both the company’s guidance range of $670 million to $675 million and the Street consensus at $670 million.
On an adjusted basis, the company earned 27 cents a share in the quarter, ahead of consensus at 16 cents.
Snowflake said it now has 432 customers with trailing 12-month product revenue topping $1 million, up 52% from a year ago. Remaining performance obligations, a measure of work signed but not yet completed, was $3.7 billion, up 23%.
Non-GAAP adjusted free cash flow was $111 million, ahead of the Street forecast at $90.3 million. Non-GAAP operating income was 10%, well ahead of the company’s forecast at 4%.
“These results reflect strong execution in a broadly stabilizing macro environment,” Snowflake CEO Frank Slootman said in a statement.
For the fiscal fourth quarter ending in January, Snowflake is projecting product sales of between $716 million and $721 million, up 29% to 30%, ahead of the Street consensus at $696 million. The company sees non-GAAP operating margin for the quarter of 4%.
For the January 2024 fiscal year, the company now sees product revenue of $2.65 billion, up 37%, up from a previous forecast of $2.6 billion. The company now sees operating income for the year of 7% with adjusted free cash flow margin of 27%, up from 5% and 26%, respectively.
Write to Eric J. Savitz at [email protected]
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