Snowflake shares pop 23% following revenue beat

A banner for Snowflake is displayed on its IPO day on the New York Stock Exchange on September 16, 2020.

Brendan McDermid | Reuters

Shares of Snowflake closed up 23% Thursday, a day after the corporate launched second-quarter outcomes that beat on the highest line.

The cloud knowledge platform supplier reported $497 million in revenue for the quarter, greater than the $467 million anticipated by analysts, based on Refinitiv. The largest chunk of Snowflake’s gross sales, product revenue, grew 83% 12 months over 12 months to $466.3 million.

Analysts from Canaccord Genuity stated this was “another excellent quarter” for Snowflake, and although they stated executives provided just a little warning in regards to the unsure macroeconomic atmosphere, it looks like enterprise as standard on the firm.

“SNOW shares aren’t cheap,” they wrote in a Thursday word, “but this is a category-leading company that’s growing far faster than almost anything else in software and doing so nicely profitably with improving cash margins.”

Loop Capital analysts have been additionally inspired by Snowflake’s “exceptionally good” outcomes.

They stated the corporate’s success was pushed by continued traction upmarket, robust execution, ongoing knowledge warehouse migration to the cloud, and the addition of extra merchandise and use circumstances.

“With this in mind, we believe SNOW is still early into its massive market opportunity, particularly with large organizations that are undergoing multi-year initiatives migrating workloads to the cloud,” they wrote in a Thursday word.

Snowflake stated it anticipates product revenue shall be between $500 and $505 million in its third quarter, and between $1.91 billion and $1.92 billion for the complete 12 months. 

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