Snowflake saw its stock price rise 22% in after-hours trading following the release of fiscal second-quarter earnings that outpaced analyst forecasts. The company’s revenue expanded 35% year over year during the quarter ending July 31, while its net loss narrowed substantially compared to the prior-year period. Net losses totaled $191.7 million, equivalent to 55 cents per share, down from $297.9 million or 89 cents per share in the same quarter one year prior.
The company attributed some of its momentum to its CoCo artificial intelligence coding agent product, which has expanded its user base to 9,100 accounts. The platform added more than 2,000 accounts during the most recent quarter, demonstrating continued adoption of the AI-powered offering.
Looking ahead, Snowflake raised its financial expectations for the coming period. For the fiscal third quarter, the company projected product revenue of $1.59 billion, exceeding the $1.50 billion consensus estimate among analysts tracked by StreetAccount. Additionally, management lifted its full-year guidance, now forecasting $6.07 billion in product revenue for the fiscal year, compared to the $5.84 billion projection issued in May.
The company also adjusted its profitability expectations upward, targeting a 14.5% adjusted operating margin for the year, wider than the 13.5% margin it had previously guided in May. Since the start of the year through the close of trading, Snowflake shares had gained 39%, outpacing the S&P 500’s roughly 12% advance. Company executives were scheduled to discuss the results with analysts during a conference call beginning at 5 p.m. ET.
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