Snowflake stock rose 22% in extended trading following the release of its fiscal second quarter results and updated financial projections. The data analytics software company’s performance exceeded analyst expectations across multiple metrics.
For the quarter ending July 31, Snowflake reported revenue growth of 35% compared to the prior year period. The company recorded a net loss of $191.7 million, or 55 cents per share, which represented an improvement from the net loss of $297.9 million, or 89 cents per share, reported one year earlier.
The company attributed part of its momentum to its CoCo artificial intelligence coding agent, which had accumulated 9,100 accounts. This represented a gain of more than 2,000 accounts during the quarter. Management highlighted this expansion as a key driver of user growth and engagement.
Snowflake increased its financial guidance for the fiscal year ahead. The company projected product revenue of $6.07 billion for the full fiscal year, up from its May forecast of $5.84 billion. For the fiscal third quarter, it estimated product revenue of $1.59 billion, exceeding the $1.50 billion consensus among analysts surveyed by StreetAccount. Additionally, the company raised its adjusted operating margin guidance to 14.5%, compared with the 13.5% projection issued in May.
At the time of the market close on Wednesday, Snowflake shares had gained approximately 39% year to date, outperforming the S&P 500 index, which rose roughly 12% during the same period. Company executives were scheduled to discuss the quarterly results with analysts during a conference call scheduled for 5 p.m. ET.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI