Snowflake stock soars on strong revenue and Q4 guidance

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Frank Slootman, CEO of Snowflake, on the day of its 2020 IPO. He is known as a demanding leader, and straight shooter. “I’ve often been in board meetings at other companies and the CEO will put up a list of 10 priorities … well, that’s the same as having no priorities,” he recently told CNBC.
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Shares of the Snowflake data-analytics software company were up more than 13% on Wednesday after it released third-quarter earnings that surpassed analyst expectations for revenue and provided strong product revenue guidance.

Here’s how the company did:

  • Earnings: Loss of 51 cents per share
  • Revenue: $334.4 million, vs. $305.6 million expected by analysts, according to Refinitiv.

Revenue grew 110% year over year in the fiscal third quarter, which ended on Oct. 31. In the previous quarter revenue increased by 104%. The company’s net loss decreased to $154.9 million, down from $168.9 million a year prior.

Snowflake provided fourth quarter product revenue guidance between $345 million and $350 million. That would represent year-over-year growth between 94% and 96%. The projection came in above the FactSet consensus estimate of $315.9 million.

For the full 2022 fiscal year Snowflake called for $1.126 billion to $1.131 billion in product revenue. That would represent year-over-year growth between 103% and 104%. That guidance was also above the $1.06 billion and $1.07 billion FactSet consensus.

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