"Snowflake Inc.'s revenue more than doubled in the latest period and the cloud-computing-services company issued a bullish outlook, cheering investors.
The Montana-based company, which went public last year and has yet to reach profitability, posted revenue of $334.4 million on Wednesday to generate a net loss of $154.9 million, beating Wall Street expectations.
Snowflake also forecast product sales this quarter of at least $345 million, also head of analysts' forecasts, and said it now expects product sales for the year to more than double to about $1.13 billion from the year earlier.
Snowflake was one of the hottest stocks last year when it went public. The stock that was priced at $120 as it listed has given back some of its gains of last year. It closed down more than 8% on Wednesday at around $311. Shares rose more than 15% in after-hours trading following the results.
The strong revenue performance in the most recent quarter was driven by additional business the company didn't anticipate, principally from some of its large, established customers, Chief Financial Officer Michael Scarpelli said on a call with analysts. That level of outperformance, he said, was unlikely to be repeated.
The company has benefited significantly as the pandemic changed how companies operate and pushed digital acceleration into overdrive, boosting the fortunes of cloud-computing companies broadly.
Snowflake's data-warehousing software has enjoyed robust demand by enterprises looking to speed up their business-analytics abilities and because it works across all the major cloud platforms.
Snowflake, whose investors include Warren Buffett's Berkshire Hathaway Inc. and Iconiq Capital LLC, an investment firm that manages money for some of the most prominent people in Silicon Valley, also has set high expectations for itself. The company in June said it would hit $10 billion in product revenue in its 2029 fiscal year.
On Wednesday, Snowflake said it had 5,416 customers as of Oct. 31, compared with 4,990 as of July 31." [1]
1. Cloud-Data Company Snowflake Reports Strong Growth in Sales --- Firm expects product revenue to more than double this year to about $1.13 billion
Armental, Maria. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 02 Dec 2021: B.2.
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