Snowflake Inc (NYSE:SNOW) reported third-quarter financial results after the market close on Wednesday. Here’s a rundown of the report.
Q3 Earnings: Snowflake reported third-quarter revenue of $942.09 million, beating the consensus estimate of $896.99 million. The data cloud company reported adjusted earnings of 20 cents per share, beating analyst estimates of 15 cents per share, according to Benzinga Pro.
Total revenue was up 28% year-over-year. Product revenue came in at $900.3 million, up 29% year-over-year. Net revenue retention rate was 127% in the quarter.
Remaining performance obligations totaled $5.7 billion, up 55% year-over-year. Snowflake said it ended the quarter with 542 customers with trailing 12-month product revenue greater than $1 million.
“Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest and most cost-effective enterprise data platform. That is what’s leading us to win new logo after new logo, expand within our customer base, and displace our competition over and over again,” said Sridhar Ramaswamy, CEO of Snowflake.
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Outlook: Snowflake expects fourth-quarter product revenue in the range of $906 million to $911 million, up approximately 23% year-over-year. The company also raised its full-year product revenue guidance from $3.356 billion to $3.43 billion, representing 29% year-over-year growth.
Management will hold a call to further discuss the quarter with analysts and investors at 5 p.m. ET.
What Else: Snowflake announced it signed a definitive agreement to acquire enterprise AI company Datavolo. Snowflake expects the acquisition to help the company simplify data engineering workloads and deliver data interoperability and extensibility, a building block for effective enterprise AI.
Snowflake also announced a strategic multi-year partnership with AI data cloud company Anthropic, which is backed by Amazon.com Inc (NASDAQ:AMZN). The partnership is expected to help enable global enterprises develop and scale easy, efficient and trusted AI products.
Snowflake said Anthropic’s newest Claude 3.5 models will be available to leverage within Snowflake Cortex AI on Amazon Web Services.
“Our partnership with Anthropic represents a massive leap forward in expanding on our promise to provide thousands of global customers with easy, efficient, and trusted AI for a holistic set of enterprise use cases,” said Christian Kleinerman, executive vice president of Product at Snowflake.
“By bringing Anthropic’s industry-leading models to customers’ enterprise data where it already lives, within the security and governance boundaries of the AI Data Cloud, we will unleash new ways for businesses to harness this data for agentic use cases, coding assistants, document chatbots, unstructured data analytics, and more.”
SNOW Price Action: Snowflake shares were down about 34% year-to-date heading into the print. The stock was up 18.65% in after-hours, trading at $153.23 at the time of publication Wednesday, according to Benzinga Pro.
Photo: Shutterstock.
