Frank Slootman, CEO of Snowflake, on IPO 2020, September 16, 2020.
CNBC
Shares of cloud data platform providers Snowflakes up more than 17% in trading that lasted Wednesday after the company announced second quarter earnings beat analysts’ revenue expectations.
Here’s how the company did it:
- EPS: Lose 70 cents
- Turnover: $497 million versus $467 million expected, according to Refinitiv
The company’s revenue for the quarter ended July 31 was up 83% year-over-year to $497 million, down slightly from the previous quarter. 85% evolution. The largest part of revenue, product sales, also increased 83% year-over-year to $466.3 million. Product revenue is an important metric for Snowflake because it recognizes revenue based on platform consumption.
Snowflake said it predicts product sales of $500 to $505 million for the third quarter and $1.91 billion to $1.92 billion for the full year. Product gross margin, operating margin, and adjusted free cash flow are expected to be 75%, 2%, and 17%, respectively, for the full year.
Snowflake said it had 6,808 customers during the quarter, and that’s higher than the FactSet consensus estimate of 6,739, according to StreetAccount.
