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Snowflake (NYSE:SNOW) climbed about 10% in early Thursday trading after topping Wall Street expectations for its fiscal first quarter and lifting its product revenue guidance for the year.
Adjusted earnings per share came in at $0.24, ahead of the $0.21 consensus. Revenue grew 26% year over year, led by a 26% gain in product revenue and a 16% increase in professional services and other segments.
The data cloud company now expects full-year product revenue to reach $4.33 billion, up from its prior forecast of $4.28 billion. That also beats the $4.29 billion market consensus.
For the second quarter, Snowflake guided product revenue in the range of $1.035 billion to $1.045 billion. The midpoint suggests around 25% growth from a year earlier and is slightly ahead of analysts' expectations.
Remaining performance obligations rose 34% to $6.7 billion, signaling strong future demand.
Snowflake's platform has seen growing traction as enterprises invest in artificial intelligence and migrate workloads to the cloud. Its ongoing partnerships with OpenAI and Anthropic are also drawing interest from customers developing AI applications.
This article first appeared on GuruFocus.