Snowflake reported quarterly results that exceeded analyst expectations, with the company’s stock rising 22% in after-hours trading. The data analytics software provider posted revenue growth of 35% year over year during the fiscal second quarter ended July 31. The company’s net loss narrowed significantly to $191.7 million, or 55 cents per share, compared with a loss of $297.9 million, or 89 cents per share, in the prior-year quarter.
The company attributed part of its performance to gains from its CoCo artificial intelligence coding agent, which expanded to 9,100 accounts during the quarter. The tool added more than 2,000 accounts in the three-month period, reflecting growing adoption of the company’s AI capabilities among its customer base.
Looking ahead, Snowflake raised its financial guidance. For the fiscal third quarter, the company forecast product revenue of $1.59 billion, exceeding the $1.50 billion consensus estimate from analysts surveyed by StreetAccount. The company also increased its full-year product revenue guidance to $6.07 billion from a prior forecast of $5.84 billion made in May. Additionally, management raised its adjusted operating margin outlook to 14.5% from the 13.5% it had previously projected.
Since the start of the year, Snowflake shares had gained approximately 39%, outpacing the S&P 500 index, which rose roughly 12% in the same timeframe. The stock movement during extended trading on Wednesday represented a historically significant move for the company, which went public in 2020. Company executives were scheduled to discuss the results with analysts during a conference call later that evening.
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