Shares of Snowflake Inc. rose in after-market action on Wednesday after the data software company easily beat revenue expectations for its most recent quarter.
The company reported a fiscal second-quarter net loss of $223 million, or 70 cents per share, compared with a loss of $190 million, or 64 cents per share, in the year-earlier quarter. Analysts tracked by FactSet expected Snowflake
to post a GAAP loss per share of 56 cents.
Snowflake’s revenue rose to $497 million from $272 million, while the FactSet consensus was for $467 million. The company posted $466 million in product revenue, above the $439 million that analysts had modeled.
The company disclosed that it has a total of 6,808 customers, including 246 customers with 12-month product revenue of more than $1 million.
CEO Frank Slootman stressed that Snowflake operates on a consumption model rather than a software-as-a-service (SaaS) model, meaning customers can “regulate” how much they use Snowflake after signing a contract.
“We think that’s an advantage in the times we live in,” he said during the company’s earnings call.
Shares rose more than 17% in after-market trading.
For the fiscal third quarter, Snowflake executives expect $500 million to $505 million in product revenue, while the FactSet consensus calls for $502 million.
Chief Financial Officer Mike Scarpelli said on the company’s earnings call that amid macroeconomic uncertainty, “the guidance we’re giving is reasonable.”
Looking at the full fiscal year, Snowflake’s management expects $1.905 billion to $1.915 billion in product revenue, while analysts had forecast $1.897 billion. The company’s previous forecast called for $1.885 billion to $1.900 billion.
“We believe taking a conservative view has been rewarded in this band, and this is reflected in aftermarket stocks,” Evercore ISI analyst Kirk Mattern wrote after the report.
The gains come as several analysts took a more cautious view on Snowflake’s stock this month, with at least two lowering the stock amid concerns about competition from private Databricks as well the potential for macroeconomic pressures to affect customer spending.
Analysts were more optimistic earlier in the summer because at least three upgraded Snowflake shares in the month of June.