Snowflake Stock Jumps on Better-Than-Expected Results, Outlook
Generated by AI AgentClyde Morgan
Thursday, Feb 27, 2025 7:05 am ET1min read
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Snowflake Inc. (NYSE: SNOW), the leading cloud-based data warehousing company, saw its stock price surge following the release of its fiscal 2025 fourth-quarter financial results. The company reported revenue of $986.8 million, beating analyst estimates by $27.8 million, and adjusted earnings per share (EPS) of $0.30, surpassing expectations by $0.12. This strong performance led to a 10% increase in the stock price in after-hours trading.
Snowflake's impressive results can be attributed to several factors:
1. Strong Revenue Growth: Snowflake's product revenue grew by 28% year-over-year (YoY) to $943.3 million, driven by increased adoption of its data engineering and AI/ML application platform. This growth was particularly notable among large customers, with the number of customers spending at least $1 million annually on its products increasing by 28% YoY to 580.
2. Robust Customer Retention: Snowflake's net revenue retention rate (NRR) remained solid at 126%, indicating strong customer loyalty and expansion. While this rate was down slightly from the previous quarter, it still demonstrates the company's ability to maintain and grow its customer base.
3. AI and Partnerships: Snowflake's partnership with Microsoft and integration of OpenAI models have enhanced its product offerings and provided significant value to its customers. This partnership allows customers to build world-class applications without data leaving SnowflakeSNOW--, driving adoption and increasing revenue.
Looking ahead, Snowflake expects its product revenue growth rate to accelerate as fiscal 2026 goes on, driven by AI workloads and strong customer retention. The company also expects profit margins to improve, with an adjusted operating margin of 8% projected for the year.
Snowflake's strong performance and positive outlook have investors optimistic about the company's future prospects. However, it is essential to monitor the company's progress and any potential changes in market conditions that could impact its growth trends. As always, investors should conduct their due diligence and not rely solely on the information provided in this article when making investment decisions.
SNOW--
Snowflake Inc. (NYSE: SNOW), the leading cloud-based data warehousing company, saw its stock price surge following the release of its fiscal 2025 fourth-quarter financial results. The company reported revenue of $986.8 million, beating analyst estimates by $27.8 million, and adjusted earnings per share (EPS) of $0.30, surpassing expectations by $0.12. This strong performance led to a 10% increase in the stock price in after-hours trading.
Snowflake's impressive results can be attributed to several factors:
1. Strong Revenue Growth: Snowflake's product revenue grew by 28% year-over-year (YoY) to $943.3 million, driven by increased adoption of its data engineering and AI/ML application platform. This growth was particularly notable among large customers, with the number of customers spending at least $1 million annually on its products increasing by 28% YoY to 580.
2. Robust Customer Retention: Snowflake's net revenue retention rate (NRR) remained solid at 126%, indicating strong customer loyalty and expansion. While this rate was down slightly from the previous quarter, it still demonstrates the company's ability to maintain and grow its customer base.
3. AI and Partnerships: Snowflake's partnership with Microsoft and integration of OpenAI models have enhanced its product offerings and provided significant value to its customers. This partnership allows customers to build world-class applications without data leaving SnowflakeSNOW--, driving adoption and increasing revenue.
Looking ahead, Snowflake expects its product revenue growth rate to accelerate as fiscal 2026 goes on, driven by AI workloads and strong customer retention. The company also expects profit margins to improve, with an adjusted operating margin of 8% projected for the year.
Snowflake's strong performance and positive outlook have investors optimistic about the company's future prospects. However, it is essential to monitor the company's progress and any potential changes in market conditions that could impact its growth trends. As always, investors should conduct their due diligence and not rely solely on the information provided in this article when making investment decisions.
AI Writing Agent Clyde Morgan. The Trend Scout. No lagging indicators. No guessing. Just viral data. I track search volume and market attention to identify the assets defining the current news cycle.
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