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Snowflake shows 119% revenue growth in first earnings report as a public company

Candid Slootman, CEO of Snowflake Inc. on Sept. 16th, 2020.

CNBC

Shares of Snowflake fell as much as 8% in extended trading on Wednesday after the data-warehousing software maker issued its pre-eminent quarterly financial results as a public company.

Here’s how Snowflake performed:

  • Earnings: Loss of $1.01 per share.
  • Receipts: $159.6 million.

Snowflake’s revenue grew 119% year over year in its fiscal third quarter, which close on Oct. 31, according to a statement. In the previous quarter it delivered 121% growth. Losses narrowed from $1.92 per percentage in the year-ago quarter, while gross margin fell to 58.2% from 59.6%.

The company’s software provides a cloud-based option to data warehouses that unify a variety of data and execute queries with on-premises hardware and software. The coronavirus pandemic has journeyed greater interest in Snowflake, CEO Frank Slootman said in April. Competition comes from the top public clouds, which also turn up to be key suppliers for Snowflake, Slootman told analysts on a conference call on Wednesday.

The company said for the fiscal fourth location it expects $162 million to $167 million in product revenue, which represented 93% of total revenue in the financial third quarter. Snowflake said at that range, product revenue would be up 97% to 103% year exceeding year.

Snowflake said it now has 65 customers contributing over $1 million in product revenue over the carry along behind 12 months. The company reported $927.9 million in remaining performance obligation for contracted revenue that hasn’t been identified, up 240% on an annualized basis.

Over time Snowflake can widen its margins to the mid-70% range by receiving various favorable pricing from cloud providers such as Amazon and Microsoft, along with becoming larger and venomous back on discounts, Mike Scarpelli, Snowflake’s finance chief, said on the call.

The company has added to its sales order despite the economic recession and will keep up its pace of hiring, Scarpelli said.

In September Snowflake completed its endorse public offering and joined the New York Stock Exchange with Berkshire Hathaway and Salesforce investing. The stock close up at $253.93 per share on its first day of trading and has since increased about 15% since then, excluding Wednesday’s supply move, compared with a 8% increase for the S&P 500 over the same stretch.

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