Snowflake (SNOW) up 14% as momentum accelerated in Q3
13:58, 2 December 2021
Snowflake stock rose on Thursday as the cloud-based data analytics firm narrowed quarterly losses and provided strong sales guidance.
The company noted just under half of the Fortune 500 uses Snowflake data cloud, which allows the secure sharing of data and execution of diverse analytic workloads.
For the fiscal third quarter ended 31 October, its net loss narrowed to $154.9m (£116.2m) from a loss of $168.9m a year ago. Revenue jumped to $334.4m from $159.6m in the third quarter of 2020.
Loss per share
On a per-share basis, losses narrowed to 51 cents from a loss of $1.01 in the year-ago period.
In pre-market trading, shares were up 14% at $355.95.
“Snowflake saw momentum accelerate in Q3, with product revenue growing 110% year on year to $312.5m. Continued international expansion during the quarter resulted in product revenue from the Europe, Middle East and Africa and Asia Pacific and Japan regions being up 174% and 219% year on year, respectively,” Snowflake chair and CEO Frank Slootman said in a press release.
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Retention rate of 173%
Snowflake said remaining performance obligations were $1.8bn, representing 94% year-on-year growth. The net revenue retention rate was 173% as of 31 October.
The company now has 5,416 customers in total and 148 customers have trailing 12-month product revenue greater than $1m.
For the fourth quarter, Snowflake expects product revenue in the range of $345m-$350m and for its full year, revenue of about $1.13bn.