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

Frank 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 first quarterly financial results as a public company.

Here’s how Snowflake performed:

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

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

The company’s software provides a cloud-based alternative to data warehouses that unify a variety of data and execute queries with on-premises hardware and software. The coronavirus pandemic has driven greater interest in Snowflake, CEO Frank Slootman has said.

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

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

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

Executives will discuss the results with analysts on a conference call starting at 5 p.m. Eastern time.

This is breaking news. Please check back for updates.

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