Snowflake rising on fiscal Q2 revenue beat, raised year view

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Tiernan Ray

By

Tiernan Ray

| August 25, 2021 — 20:21 GMT (21:21 BST)

| Topic: Big Data Analytics

Cloud data warehousing pioneer Snowflake https://www.businesswire.com/news/home/20210825005718/en/ fiscal Q2 revenue that topped Wall Street’s expectations, and raised its outlook for the year’s product revenue. 

The report sent Snowflake shares fractionally higher in late trading. 

CEO Frank Slootman remarked that “Snowflake saw continued momentum in Q2 with triple-digit growth in product revenue, reflecting strength in customer consumption.” 

Added Slootman, “While increasing net revenue retention rate to 169%, we also boosted gross margin and operating margin efficiency while our adjusted free cash flow was positive for the third quarter in a row.”

Revenue in the three months ended in July more than doubled, year over year, to $272.2 million, yielding a net loss of 64 cents a share.

Analysts had been modeling $256 million and a net loss of 64 cents per share.

That total revenue includes product revenue of $254.6 million, up 103%, and ahead of the company’s forecast for $235 million to $240 million.

Snowflake said its remaining performance obligation, a measure of backlog, rose 122%, year over year, to $1.5 billion. 

For the current quarter, the company projected product revenue to rise to $280 million to $285 million, representing growth of 89% to 92%. That is above consensus for product revenue of $272 million.

For the full year, the company sees product revenue rising to a range of $1.06 billion to $1.07 billion. That compares to the company’s prior forecast for $1.02 billion to $1.035 billion, and consensus of $1.018 billion.

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Tiernan Ray

By

Tiernan Ray

| August 25, 2021 — 20:21 GMT (21:21 BST)

| Topic: Big Data Analytics