Snowflake Inc (NYSE: SNOW) shares jumped nearly 15% in extended trading on revenue that more than doubled in Q3 and expectations that it will double again in the current quarter.
Key takeaways in the Q3 report
Snowflake reported $334.4 million in revenue for the third quarter versus the year-ago figure of $160 million. But its quarterly loss still ballooned 51 cents a share from last year’s 28 cents a share.
The cloud-based data warehousing company said its product revenue stood at $312.5 million, with professional services accounting for the rest. According to FactSet, experts had forecast $284 million product sales for total revenue of $306 million but a much narrower 6 cents of per-share loss.
Other notable figures include $1.8 billion in remaining performance obligation, representing a 94% annualised increase – roughly in line with what experts anticipated. Net revenue-retention rate printed at 173%.
Snowflake now has 5,416 customers versus 3,554 in the same quarter of fiscal 2021. 148 of these, the NYSE-listed company revealed, spent over $1.0 million in the trailing twelve months.
Guidance for the future
For the fiscal fourth quarter, Snowflake forecasts up to $350 million in product revenue. Analysts, in comparison, were calling for $316 million. The U.S. company raised its sales guidance for the full year to $1.13 billion.
In the earnings press release, CEO Frank Slootman said:
Snowflake saw momentum accelerate in Q3, with product revenue up 110%. Continued international expansion resulted in product revenue from the EMEA and APJ regions up 174% and 219%, respectively. Our vertical industry focus is an important evolution of our selling motion, and Snowflake continues to see broad industry adoption.
The stock had closed the regular session down nearly 9.0% on Wednesday. While it’s still down over 10% from its year-to-date high of $402 on November 16th, Credit Suisse has a price target of $455 on Snowflake that represents another 30% upside from here.
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