Snowflake(US:SNOW) Zhi Tong Cai Jing·2025-08-27 23:19Core Viewpoint - Snowflake reported strong Q2 performance, driven by its AI data cloud business, with revenue growth of 32% year-over-year, surpassing analyst expectations [1][4]. Financial Performance - Q2 net loss was $298 million, with a loss per share of $0.89; revenue reached $1.144 billion, exceeding the expected $1.09 billion [1]. - Non-GAAP earnings per share were $0.35, above the anticipated $0.27 [1]. - Product revenue is projected to be approximately $4.4 billion for the fiscal year ending January, representing a 27% increase from the previous year, exceeding the average analyst estimate of $4.34 billion [1]. Market Position and Competition - Despite concerns about competition from new AI-focused suppliers, Snowflake's platform remains resilient due to its compatibility with various AI models [1]. - The company has seen a 21% increase in new customer acquisition, with 654 customers generating over $1 million in product sales over the past year [8]. - Databricks, a major competitor, recently raised funding, valuing the company over $100 billion, but investor concerns about competition have eased over the past year [7]. Product Development and Strategy - Snowflake is actively developing products to facilitate the use of generative AI technologies on its platform, with new product contributions exceeding expectations in Q2 [4]. - The company added over 500 employees in the quarter, with the number of sales and marketing hires in the past six months surpassing the total from the previous two years [10]. Stock Performance - Snowflake's stock has risen nearly 30% this year, outperforming most software companies, although it experienced a 9% decline in the past month [4]. - Following the earnings announcement, the stock price increased by nearly 13% [1].