Snowflake Shares Spike as Sales Come In Strong. Management Is More Upbeat.
Text size
Snowflake present has astir 5,000 customers.
DreamstimeSnowflake shares are gaining crushed successful precocious trading aft the institution posted better-than-expected growth for its fiscal 2nd 4th ended July 31. Management raised its full-year forecast for merchandise income for a 2nd time.
Snowflake banal (ticker: SNOW) was up 5.5% to $299.28 successful precocious trading.
For the quarter, the cloud-based information warehouse bundle institution reported gross of $272.2 million, up 104% from a twelvemonth ago, and up of the Street statement astatine $256.5 million. Product gross was $254.6 million, up 103%, and up of the company’s guidance range of $235 cardinal to $240 million.
Snowflake posted an operating nonaccomplishment for the 4th of $21.9 cardinal connected a non-GAAP basis, resulting successful a non-GAAP operating borderline of -8%, amended than the company’s projection of -19%. Adjusted escaped currency travel was $2.8 million, the 3rd 4th successful a enactment that measurement has been successful the black. On a GAAP basis, the institution mislaid 64 cents a stock successful the quarter.
The institution ended the 4th with remaining show obligations, a measurement of aboriginal work, of $1.5 billion, up 122% from a twelvemonth ago.
Snowflake (ticker: SNOW) said it present has 4,990 full customers, 116 with trailing 12 months merchandise gross of much than $1 million.
“Snowflake saw continued momentum successful Q2 with triple-digit maturation successful merchandise revenue, reflecting spot successful lawsuit consumption,” Snowflake Chairman and CEO Frank Slootman said successful a statement. Slootman noted that nett gross retention, a measurement of recurring business, was 169%, up from 168% successful the April 4th and 158% a twelvemonth ago.
For the October quarter, Snowflake sees merchandise gross of betwixt $280 cardinal and $285 million, up betwixt 89% and 92% from a twelvemonth ago, with a non-GAAP operating borderline of -7%.
For the afloat twelvemonth ending successful January 2022, the institution present sees merchandise gross ranging from $1.06 cardinal to $1.07 billion, up betwixt 91% and 93% a share, supra its erstwhile forecast of $1.02 cardinal to $1.035 billion, the 2nd clip it has raised guidance for the year.
Snowflake sees a afloat twelvemonth non-GAAP operating borderline of -9%, a crisp betterment from its erstwhile forecast for -17%. The institution sees an adjusted escaped currency travel borderline of 7%. Snowflake expects a non-GAAP merchandise gross borderline of 73%, up from 69% successful fiscal 2021, and 63% successful fiscal 2020.
Write to Eric J. Savitz astatine eric.savitz@barrons.com
What's Your Reaction?
