Snowflake reported financial results that exceeded analyst expectations, with shares rising 22% in after-hours trading on Wednesday. The data analytics software maker demonstrated strong revenue growth of 35% year over year in the fiscal second quarter, which concluded on July 31.
The company’s net loss narrowed compared to the prior year period, falling to $191.7 million, or 55 cents per share, from $297.9 million, or 89 cents per share. Snowflake highlighted progress with its CoCo artificial intelligence coding agent, which reached 9,100 accounts, representing growth of over 2,000 accounts during the quarter.
Looking ahead, Snowflake raised its financial guidance on multiple fronts. For the fiscal third quarter, the company projected $1.59 billion in product revenue, exceeding the $1.50 billion consensus forecast. The company also increased its full-year product revenue outlook to $6.07 billion from $5.84 billion previously guided in May, and widened its adjusted operating margin forecast to 14.5% from the earlier 13.5% projection.
Snowflake’s stock performance reflected strong investor sentiment following the announcement. As of the Wednesday market close, the shares had gained approximately 39% during the year to date, outpacing the S&P 500 index, which had advanced about 12% over the same timeframe. Company management scheduled a conference call with analysts to discuss the results at 5 p.m. ET.
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