Snowflake Reports Strong Earnings for Q2 and Raises Outlook for Current Quarter

Data cloud company Snowflake released second-quarter earnings that beat analysts’ estimates. The positive numbers led to an even better outlook for the current quarter, which ends in October.

Product revenue for the company went up 30% to $829 million, which was well above the $813 million most experts expected. Profit per share hit 18 cents versus an estimate of 16 cents per share. Total revenue increased 29% to $868.8 million.

In a statement, Snowflake announced its earnings outlook for the current quarter. The Montana-based company expects product revenue to fall between $850 million and $855 million. Fiscal year 2025 product sales will likely be around $3.36 billion, which is slightly higher than a previous projection of $3.3 billion, according to Bloomberg.

With increased competition from rival Databricks Inc. and Microsoft, Snowflake has been busy creating generative AI products as well as innovative ways to analyze large data sets. The company offers businesses simplified cloud solutions for the storing, searching, and sharing of information.

“The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products,” said Snowflake CEO Sridhar Ramaswamy.

Earlier this year, Snowflake was hit with a cyberattack that affected major clients like AT&T, Ticketmaster, and LendingTree. However, Ramaswamy claims the data breach only jeopardized clients not using multifactor authentication with their user IDs and passwords. Snowflake’s main business was not impacted.

“These headlines, and that’s what they are, have not really affected our core business with existing or new customers,” Ramaswamy said, per CNBC. “We obviously talk about security a lot more with customers because we want them to be safe, but the core Snowflake platform is incredibly strong and secure.”

According to Snowflake, 510 customers have spent over $1 million with the company over the last year, up from 485 reported in the previous quarter. Net revenue retention rate, which is recurring revenue retained from existing customers, was 127%.