Snowflake Stock Surges as Earnings and Revenue Beat Estimates Amid Rebound in Cloud Spending

Snowflake (SNOW) has announced third-quarter earnings and revenue that exceeded expectations, driven by steady growth at cloud computing partner (AMZN). SNOW stock’s guidance also surpassed expectations.


The company released its Snowflake earnings report after the market close, citing a 32% increase in revenue to $734.2 million. This figure exceeded analysts’ Q3 revenue projection of $713.8 million.

Snowflake reported a loss of 65 cents using generally accepted accounting principles, or GAAP, compared to a 63-cent loss a year earlier. On an adjusted basis, analysts estimated the company would report a profit of 16 cents per share.

SNOW Stock: Q4 Outlook Above Views

For the current quarter ending in January, Snowflake expects product revenue in the range of $716 million to $721 million, surpassing analysts’ expectations. Following the earnings report, SNOW stock surged 9.5% to near 192 in extended trading.

As of the latest market data, SNOW stock had advanced 19% in 2023, with most of the gain following better-than-expected Q3 results from Datadog (DDOG), which is also a cloud partner of Amazon.

Concerns have been raised about Snowflake’s consumption-based business model and its dependency on cloud-based data analytical and storage services, given the potential impact of a slowing U.S. economy. Despite this, Snowflake garners about 95% of total sales from product revenue, generated from cloud-based services as well as professional consulting and training.

SNOW stock holds a Relative Strength Rating of 87 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech
for updates on artificial intelligence, cybersecurity, and cloud computing.


IBD Digital: Unlock IBD’s Premium Stock Lists, Tools, And Analysis Today

Learn How To Time The Market With IBD’s ETF Market Strategy

How To Use The 10-Week Moving Average For Buying And Selling

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader


Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
DMCA compliant image

Leave a Comment