Snowflake Posts Strong Q1 Results, Revenue Surpasses Expectations

Snowflake (NYSE:SNOW) kicked off its fiscal year with impressive first-quarter results, reporting revenue that exceeded expectations and sent shares soaring by 7.5%.

Key Financial Highlights:

• Revenue: Snowflake reported revenue of $828.7 million for the first quarter, marking a 33% increase from the same period last year and surpassing the consensus estimate of $786.82 million.
• EPS: Adjusted earnings per share (EPS) came in at $0.14, missing the estimate of $0.18 by $0.04. However, robust revenue growth overshadowed the EPS miss.
• Product Revenue: The company's product revenue saw a 34% year-over-year (YoY) increase, reaching nearly $790 million.

Forward Guidance and Customer Metrics:

• Q2 Product Revenue: Snowflake guided for Q2 product revenue between $805 million and $810 million, representing a 26-27% YoY growth.
• Net Revenue Retention Rate: The company maintained a strong net revenue retention rate of 128%, reflecting high customer satisfaction and increased usage.
• Customer Base Growth: The number of customers generating over $1 million in trailing 12-month product revenue grew by 30% YoY to 485.
• Remaining Performance Obligations: These surged to $5.0 billion, a 46% YoY increase, indicating significant future revenue potential.

CEO's Statement:

Sridhar Ramaswamy, Snowflake's CEO, attributed the strong quarterly performance to the robustness of the company's core business and the increasing interest in its AI products.

Snowflake's solid performance and optimistic forward guidance underscore its strong market position and growth potential in the cloud-based data warehousing sector.

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