Snowflake delivered results that exceeded analyst expectations, driving a significant increase in its stock price during after-hours trading on Wednesday. The data analytics software company reported fiscal second quarter revenue that expanded 35% compared to the prior year period ended July 31. The company also narrowed its net loss to $191.7 million, or 55 cents per share, improving from a loss of $297.9 million, or 89 cents per share, in the equivalent quarter a year earlier.
A key driver of investor enthusiasm centered on the company’s artificial intelligence coding tool, called CoCo. The product has attracted 9,100 accounts, representing growth of more than 2,000 accounts during the quarter. This expansion underscored momentum in the company’s AI-driven offerings.
Management provided forward guidance that also exceeded market consensus. For the fiscal third quarter, the company projected product revenue of $1.59 billion, surpassing the $1.50 billion consensus estimate from analysts polled by StreetAccount. More significantly, Snowflake increased its full-year product revenue forecast to $6.07 billion, up from the $5.84 billion guidance issued in May.
The company also raised profitability expectations, now forecasting a 14.5% adjusted operating margin compared with the 13.5% projection from the prior update. Year to date, Snowflake shares had appreciated approximately 39%, outpacing the S&P 500 index, which had gained roughly 12% over the same timeframe. Company executives were scheduled to discuss the results with analysts during a conference call starting at 5 p.m. ET.
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