Boosted by customers in the financial services industry, Snowflake reported July quarter revenue that handily beat Wall Street views. Guidance for SNOW stock came in above expectations, sending the software stock soaring Thursday.
XSnowflake (SNOW) said second-quarter revenue jumped 83% to $497.2 million from a year earlier. Analysts had estimated Snowflake revenue at $467.5 million. Revenue climbed 85% and 101% in the two previous quarters.
"Snowflake remains on the offensive, demonstrating durable secular growth despite challenging macroeconomic conditions," Credit Suisse analyst Phil Winslow said in a note to clients.
The revenue beat catapulted shares of the enterprise software maker 23.1% higher to close at 196.28 on the stock market today. The enterprise software maker reported Snowflake earnings after the market close on Wednesday.
SNOW Stock: Revenue Tops Estimates
The report also said product revenue rose 83% to $466.3 million vs. estimates of $439 million.
"Among its five verticals, financial services delivered the best growth," Raymond James analyst Simon Leopold said in a note to clients. "Advertising, media, entertainment and technology grew in line, implying that retail and health care grew slower."
Snowflake added that it now has 246 customers with "trailing 12-month product revenue greater than $1 million," up from 206 from the previous quarter.
The company reported a loss of 70 cents a share for the three months ended July 30, using generally accepted accounting principles, or GAAP. That compares with a loss of 64 cents a year earlier. Analysts polled by FactSet expected Snowflake to report a loss of 56 cents a share.
On an adjusted basis, analysts estimated Snowflake would report a loss of 1 cent per share. But the company does not break out adjusted earnings in its releases.
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The company said product revenue guidance for Snowflake stock met expectations. For the current quarter ending in October, Snowflake expects product revenue of $502.5 million at the midpoint of guidance. Analysts had expected $502 million.
SNOW stock was down 55% for the year heading into the earnings report.
More Customers Generating $1 Million Sales
Snowflake sells data analytics and management tools that run on cloud-computing platforms such as Amazon Web Services, part of Amazon.com (AMZN).
Heading into the Snowflake earnings report, the software stock had a Relative Strength Rating of 19 out of a best-possible 99, according to IBD Stock Checkup.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech or updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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