The data storage and analytics company delivered solid revenue growth in Q2, but it's still losing money on a GAAP basis.Shares of Snowflake (SNOW -12.95%) were sliding Thursday morning after the cloud-based data warehousing company posted quarterly results that beat analysts' estimates, but didn't seem to be enough to please investors. Investors also appeared disappointed with the company's falling profits and management's guidance.As of 11:10 a.m. ET, the stock was down by 13%. A good (but not good enough ...

Company Performance - Snowflake reported total revenue of $868.8 million for Q2 FY25, a 29% year-over-year increase, driven by a 30% surge in product revenue to $829.3 million [2] - The company achieved a net revenue retention rate of 127% for Q2 FY25, indicating strong customer retention and expansion [3] - Snowflake reported 510 customers with trailing 12-month product revenue over $1 million, a significant increase from the prior year, and serves 736 Forbes Global 2000 customers [4] - Remaining Performance Obligations (RPO) grew 48% year-over-year to $5.2 billion, signaling strong future revenue potential [5] - Non-GAAP operating income improved to $43.7 million, compared to an operating loss in the same period last year [5] Market Position and Growth Drivers - Snowflake is a leader in the rapidly growing cloud data platform market, benefiting from the increasing importance of data and analytics in business decision-making [1] - The company's unique architecture, which separates computing and storage, offers greater flexibility, scalability, and cost-effectiveness compared to traditional data warehousing solutions [8][9] - Snowflake's focus on innovation, including investments in AI and machine learning, enhances its competitive position and value proposition [9] Financial and Strategic Initiatives - Snowflake's board authorized an additional $2.5 billion for its stock repurchase program, signaling confidence in the company's future and commitment to shareholder value [7] - Despite strong Q2 performance, the stock declined nearly 8% in after-hours trading due to weaker-than-expected guidance and concerns about profitability and competitive pressures [6][10] Industry Trends - The broader market trend towards cloud computing and the increasing need for scalable data solutions create a tailwind for Snowflake's business [8] - Competitive pressures from companies like Databricks and concerns about Snowflake's progress in AI are contributing to market sentiment [6]

Aside from the semiconductor producers, another benefactor of the artificial intelligence (AI) driven rally has been the cloud server sector, in which Snowflake (NYSE: SNOW) has been an up-and-coming candidate.A beat on earnings per share of $0.18 compared to $0.16 and revenue of $869 million compared to the expected $852 million in Snowflake’s Q2 earnings report on August 21 has prompted the leadership to raise its guidance for the upcoming quarter and the full financial year of 2025.However, Snowflake’s C ...

herstockart/iStock via Getty Images Investment Thesis Snowflake (NYSE:SNOW) delivered fiscal Q2 2025 earnings, which saw its stock slip 8% after hours. But details matter. It wasn't so much a lack of beats that drove its stock lower because Snowflake not only beat on the top line and the bottom line, but it also revised higher its growth rates for its fiscal year. The issue is that Snowflake carries a premium valuation, while its profitability profile cannot match investors' high expectations. More conc ...

Key TakeawaysShares in cloud data-warehouse software company Snowflake dropped 8% in extended trading on Wednesday after a widening net loss and rising costs overshadowed quarterly results that came in ahead of expectations. The share price broke out from a falling wedge pattern earlier this month, but that move looks to be tested following the stock's projected post-earnings fall.Snowflake shares may find buying interest on the chart at key price levels including $123, $108, and $95. Shares in cloud data-w ...

Financial Data and Key Metrics Changes - Product revenue for Q2 was $829 million, representing a 30% year-over-year increase [7] - Remaining performance obligations (RPO) totaled $5.2 billion, with year-over-year growth accelerating to 48% [14] - Non-GAAP product gross margin was 76%, slightly down year-over-year, while non-GAAP operating margin was 5% [15] - The company ended the quarter with $3.9 billion in cash and investments, and repurchased $400 million worth of shares [15] Business Line Data and Key Metrics Changes - Financial services and technology verticals drove growth in the quarter [13] - Over 2,500 accounts were using Snowflake AI on a weekly basis, with significant traction in the Notebooks offering [12] - More than 400 accounts were using Iceberg by the end of Q2, indicating broad adoption of new product features [11] Market Data and Key Metrics Changes - The company reported strong bookings in the quarter, with two nine-figure deals signed [14] - Approximately 80% of customers are paying annually in advance, indicating stable customer relationships [15] Company Strategy and Development Direction - The company is focused on making Snowflake the best cloud for computation, collaboration, and application on all data, leveraging AI for easier product creation and maintenance [6] - The innovation engine is in overdrive, with nine new product announcements and over 15 product capabilities brought to market [11] - The company aims to be a key player in the Iceberg ecosystem, promoting interoperability and industry standards [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the core business and the rapid progress made on AI initiatives [7] - The company expects product revenue for Q3 to be between $850 million and $855 million, and has increased its FY '25 product revenue guidance to approximately $3.356 billion [16] - Management noted that the cybersecurity incidents affecting customers did not impact consumption significantly [19] Other Important Information - The company has authorized an additional $2.5 billion for stock repurchase through March 2027 [15] - The company is seeing broad adoption of AI products, with expectations for continued revenue contribution [12] Q&A Session Summary Question: Impact of cybersecurity incidents on consumption - Management stated that the cybersecurity incident had no significant impact on consumption, and the CrowdStrike outage was minimal [19] Question: Performance of Iceberg tables - Management reported that 400 customers are using Iceberg, and there has been no movement of storage out of Snowflake [21] Question: Factors affecting gross margin - Management indicated that margins were slightly better than forecasted, but guidance remains at 75% for the year [24] Question: Nine-figure deals - The nine-figure deals were renewals with expansions from existing customers [28] Question: Future product contributions - Management expects new products like Snowpark to contribute materially to revenue in FY 2026 [30][77] Question: Trends in cash flow and collections - Collections were as planned, and there is no delayed spend impacting guidance [62] Question: Adoption of Cortex - Adoption of Cortex products is strong, with significant interest in features like Cortex LLM and Snowflake Copilot [50] Question: Migration from legacy systems - The company continues to see migrations from legacy systems, which are important for new customer acquisition and consumption increases [70]

Snowflake (NYSE:SNOW) just reported results for the second quarter of 2025.Snowflake reported earnings per share of 18 cents. This was above the analyst estimate for EPS of 16 cents.The company reported revenue of $868.82 million.This was 2.08% better than the analyst estimate for revenue of $851.16 million.InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and ...

For the quarter ended July 2024, Snowflake Inc. (SNOW) reported revenue of $868.82 million, up 28.9% over the same period last year. EPS came in at $0.18, compared to $0.22 in the year-ago quarter.The reported revenue represents a surprise of +2.26% over the Zacks Consensus Estimate of $849.65 million. With the consensus EPS estimate being $0.15, the EPS surprise was +20.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Snowflake Inc. (SNOW) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.14, delivering a surprise of -17.65%.Over the last four quarters, the company has ...

Key TakeawaysSnowflake'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-qua ...