Snowflake Inc. experienced a remarkable surge in its stock value, rising by 30% on Thursday following the announcement of its impressive third-quarter earnings that surpassed expectations. The data software company reported revenues of $942.1 million, reflecting a substantial 28% increase from the previous year and exceeding analysts’ forecasts of $900.3 million according to data compiled by Visible Alpha.
Despite a net loss of $327.9 million, which is larger than last year’s loss of $214.7 million but slightly more favorable than the expected loss of $329.5 million, Snowflake demonstrated strong adjusted profitability. After accounting for various one-time expenses—including stock-based compensation and restructuring charges—the company achieved an adjusted net income of $73.3 million. Although this figure is a decrease from last year’s adjusted income of $89.7 million, it notably outperformed analysts’ predictions of $55.3 million.
In a positive development for its future growth, Snowflake revised its product revenue outlook upward, now estimating approximately $3.43 billion in product revenue for fiscal 2025, compared to an earlier forecast of $3.36 billion. This optimistic revision signals confidence in Snowflake’s business model, which bases revenue on the usage of its suite of data products, such as compute and storage services.
Additionally, the company announced an acquisition of data integration platform Datavolo and forged a partnership with Amazon-backed Anthropic to leverage its Claude large language models within Snowflake’s product offerings, emphasizing a strategic move towards enhancing its AI capabilities.
As of recent reports, Snowflake’s shares climbed 32%, indicating strong market confidence, even though they are still about 15% below their starting value at the beginning of the year.
This performance underscores Snowflake’s resilience and ambitious growth trajectory in the competitive data management landscape, as it continues to innovate and expand its offerings in AI and data integration.
For investors and stakeholders, the future looks promising, with new partnerships and acquisitions set to strengthen the company’s market position and drive further growth.