Snowflake Inc. (SNOW) shares skyrocketed over 20% in premarket trading on Thursday, following the company's impressive third-quarter results and better-than-expected guidance for fiscal 2025.
For the third quarter ended October 31, 2024, Snowflake reported:
Adjusted earnings of $0.20 per share, surpassing analysts' estimates of $0.15 per share.
Revenue of $942.1 million, up 28% year-over-year and exceeding the consensus estimate of $899.3 million.
Product revenue, which accounts for the majority of its business, grew an impressive 29% to $900.3 million.
Encouraged by the robust demand for its data cloud and analytics platform, Snowflake raised its fiscal 2025 product revenue forecast to $3.43 billion, up from its previous guidance of $3.36 billion. The company expects fourth-quarter product revenue to range between $906 million and $911 million, exceeding analysts' expectations.
In addition to the strong financial results, Snowflake's stock rally was fueled by the company's announcement of a multiyear partnership with AI startup Anthropic. This collaboration will enable Snowflake customers to access Anthropic's large language models and build AI-powered applications within the secure and governed environment of Snowflake's platform.
Snowflake's impressive performance, optimistic outlook, and strategic AI partnership underscore the company's strong growth prospects in the rapidly expanding data analytics and artificial intelligence markets.
