Snowflake shares experienced a remarkable surge of 30% on Thursday, following the company’s impressive third-quarter earnings report, which surpassed analyst expectations. The data software firm reported a revenue of $942.1 million, reflecting a 28% year-over-year increase and exceeding forecasts of $900.3 million as compiled by Visible Alpha. While Snowflake posted a net loss of $327.9 million, this figure was slightly better than the anticipated loss of $329.5 million.
After accounting for approximately $400 million in one-time expenses, including stock-based compensation and restructuring costs, Snowflake’s adjusted net income came in at $73.3 million. Although this represents a decline from the $89.7 million reported last year, it exceeded analysts’ expectations of $55.3 million.
Looking ahead, Snowflake raised its full-year product revenue outlook, now anticipating approximately $3.43 billion for fiscal 2025, up from the previous estimate of $3.36 billion. The company also announced an acquisition of the data integration platform Datavolo and formed a partnership with Anthropic, an AI company backed by Amazon, to integrate its Claude large language models into Snowflake’s products.
Despite the recent increase, Snowflake shares remain about 15% below their starting point at the beginning of the year.
This positive momentum highlights Snowflake’s ability to adapt and innovate in a competitive market, and the company’s strategic partnerships and acquisitions signal a commitment to enhancing its product offerings. As technology continues to evolve, Snowflake’s focus on AI integration and data solutions positions it for potential growth and success.
In summary, the recent developments are indicative of Snowflake’s resilience and forward-thinking approach, promising exciting opportunities for both the company and its investors in the expanding tech landscape.