:max_bytes(150000):strip_icc()/GettyImages-2147877257-83cec7006f374fc5927ad87b25cbfe18.jpg "Snowflake Reports Widening Losses, Sending Its Stock Lower")
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Key Takeaways
- Snowflake’s second-quarter revenue grew from the year-ago period and beat analysts’ projections, but losses widened as costs rose.
- The company’s outlook also missed analysts’ estimates compiled by Visible Alpha.
- Snowflake CEO Sridhar Ramaswamy highlighted the company’s opportunities related to artificial intelligence.
Snowflake’s (SNOW) second-quarter revenue grew from the year-ago period and beat analysts’ projections, but losses widened as costs rose.
The data cloud company reported second-quarter revenue of $868.82 million, a 30% jump from the year-ago period, and above analysts’ estimates compiled by Visible Alpha. However, Snowflake’s net loss of $317.77 million or 95 cents per share widened from the year prior and represented a more significant loss than analysts projected. Excluding one-time items, adjusted earnings of 18 cents per share beat expectations.
Snowflake’s Outlook Misses Projections
The company said it expects fiscal third-quarter revenue to be between $850 million and $855 million and raised its full-year outlook to $3.36 billion, though both missed analysts’ expectations.
“The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products,” Snowflake CEO Sridhar Ramaswamy said in a release, adding that “with the combination of our platform, the network effect of collaboration and our AI innovations, we have a huge opportunity ahead to deliver even greater value to our customers.”
Shares of Snowflake were down about 7% at $125.70 in extended trading Wednesday following the company’s earnings report.