Snowflake (SNOW) Reported Better-than-Expected Quarterly Results

SNOW’s Q3 revenue of $734.17 million beat estimates of $712.78 million, while Q3 earnings per share of 25 cents came in well above expectations of 16 cents. Total revenue increased by 32% YoY, while product sales increased by 34% YoY, and remaining performance obligations increased by 23% on an annual basis. Snowflake said it ended the quarter with 436 customers and had generated more than $1 million in product sales over the past 12 months.

Snowflake Inc. is a cloud-based data cloud company headquartered in Bozeman, Montana. It was founded in July 2012 and launched publicly in October 2014 after two years in stealth mode. The company provides cloud-based data storage and analytics services, often referred to as “data as a service.”

Guidance: Snowflake expects Q4 product revenue in the range of $716 million to $721 million, representing YoY increase of 29–30%. The company also expects full-year product sales to be $2.65 billion, representing an annual increase of 37%.

As we've seen, Snowflake is raising its fiscal 2024 product sales forecast to $2.65 billion due to improved consumer trends in Q3. Once again, the company's Q3 results were significantly above expectations, which makes this stock a very attractive alternative of our typical hi-tech portfolios’ components.