Snowflake’s shares experienced a remarkable surge of 30% on Thursday, following the release of its impressive third-quarter earnings which exceeded analyst forecasts. The data software company reported a revenue of $942.1 million, marking a robust 28% increase year-over-year and surpassing the projections of $900.3 million from analysts.
Despite a net loss of $327.9 million—larger than the loss of $214.7 million experienced last year—the company’s performance was better than the anticipated loss of $329.5 million. After accounting for approximately $400 million in one-time expenses, such as stock-based compensation and restructuring costs, Snowflake presented an adjusted net income of $73.3 million. This figure, although down from $89.7 million from the previous year, surpassed the analysts’ estimate of $55.3 million.
In a positive turn, Snowflake has raised its outlook for product revenue for the full fiscal year, projecting approximately $3.43 billion for fiscal 2025, an increase from the previous forecast of $3.36 billion. This adjustment reflects the company’s reliance on a usage-based revenue model, which is expected to enhance growth as demand for its data products rises.
In addition to its financial results, Snowflake announced an acquisition of the data integration platform Datavolo, details of which were not disclosed. The company has also forged a partnership with Anthropic, an Amazon-backed firm, to incorporate its AI capabilities—specifically, the Claude large language models—into Snowflake’s offerings.
Snowflake’s stocks saw a 32% increase during trading, although they remain approximately 15% below their starting point earlier in the year.
Overall, Snowflake’s strong quarterly performance, coupled with new strategic initiatives in AI and product integrations, suggests a promising outlook for the company’s growth in the competitive data software landscape. This positive momentum may encourage investor confidence as the company continues to innovate and expand its offerings.