Snowflake announced financial results that exceeded analyst expectations, driving a significant gain in the company’s stock price during after-hours trading on Wednesday. The data analytics software maker posted revenue growth of 35% year over year for the fiscal second quarter ending July 31. The company’s net loss narrowed considerably to $191.7 million, or 55 cents per share, compared with a loss of $297.9 million, or 89 cents per share, in the same period a year earlier.
The company attributed part of its strong performance to its CoCo artificial intelligence coding agent, which has become a key growth driver. CoCo now serves 9,100 accounts, having added more than 2,000 accounts during the quarter.
Looking ahead, Snowflake provided guidance for the fiscal third quarter of $1.59 billion in product revenue, surpassing the $1.50 billion consensus estimate from analysts surveyed by StreetAccount. The company also raised its full-year product revenue forecast to $6.07 billion from its prior guidance of $5.84 billion issued in May. Additionally, Snowflake increased its projected adjusted operating margin to 14.5%, up from the 13.5% it had previously guided in May.
Snowflake’s stock performance through Wednesday’s close showed gains of 39% for the year, outpacing the S&P 500 index, which had risen approximately 12% over the same timeframe. If the stock were to maintain its after-hours gains the following day, it would represent one of the largest single-day moves since the company’s initial public offering in 2020. Company management scheduled a conference call with analysts for 5 p.m. ET to discuss the results in detail.
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