Snowflake Inc. saw a remarkable surge in its stock price, soaring 30% on Thursday following the release of its third-quarter results, which surpassed analysts’ expectations. The company reported revenue of $942.1 million, marking a 28% increase compared to the previous year and exceeding the forecast of $900.3 million from analysts. Although Snowflake recorded a net loss of $327.9 million—a figure larger than the $214.7 million loss reported last year—it was slightly better than the anticipated loss of $329.5 million.
When adjusting for one-time expenses related to stock-based compensation and restructuring, Snowflake presented an adjusted net income of $73.3 million. This represents a decrease from $89.7 million the previous year but is still above analysts’ expectations of $55.3 million.
In a positive turn of events, Snowflake also increased its forecast for “product revenue” for the fiscal year, now projecting approximately $3.43 billion, up from its previous estimate of $3.36 billion. This revenue primarily stems from usage of its data products rather than fixed contracts.
Additionally, the company announced the acquisition of Datavolo, a data integration platform, and a new partnership with Anthropic, which is supported by Amazon. This partnership aims to integrate Anthropic’s AI models within Snowflake’s products, further enhancing its technological offerings.
Despite the current upswing, Snowflake’s shares remain about 15% lower than their starting point for the year.
Overall, Snowflake’s impressive third-quarter results and strategic moves signify the company’s ongoing adaptation and growth in the competitive data software market, bringing optimism to its investors and stakeholders alike. With the rise in revenue forecasts and new partnerships, the future looks bright for Snowflake as it continues to innovate in the realm of data solutions and artificial intelligence.