Snowflake raised its full-year product revenue forecast after reporting a smaller loss for the second quarter, as demand for artificial intelligence tools continued to drive its business. Shares of the cloud data company jumped 21 percent in New York trading at around 1:10 p.m. Brasilia time on Wednesday.
The cloud storage company reported a net loss of $191.7 million, or $0.55 per share, for the quarter. That compares with a loss of $298 million, or $0.89 per share, in the same period a year earlier.
Excluding certain one-time items, Snowflake earned $0.62 per share, beating analyst estimates of $0.45 per share, according to FactSet.
Revenue Beats Expectations
Total revenue rose to $1.55 billion, up from $1.14 billion a year earlier. Analysts surveyed by FactSet had expected revenue of $1.48 billion.
Product revenue alone, which makes up 96 percent of the company's total revenue, came in at $1.49 billion.
Snowflake added 692 net new customers during the quarter, a 32 percent increase from a year earlier. Chief executive Sridhar Ramaswamy said artificial intelligence continued to widen the company's advantages, creating a flywheel effect across the business.
What Snowflake Does
Snowflake is a cloud-based data platform that allows businesses to store, manage and analyze large volumes of information. The company has increasingly built artificial intelligence capabilities into its platform, positioning itself to benefit as companies rush to adopt AI tools for processing and drawing insights from their data.
Guidance for the Rest of the Year
For the current third quarter, Snowflake projects product revenue of between $1.588 billion and $1.593 billion. Analysts had been targeting product revenue of $1.5 billion, according to FactSet.
Snowflake now expects full-year product revenue of around $6.07 billion, representing growth of 31 percent year over year. Analysts had been targeting $5.85 billion. The company had previously forecast product revenue of $5.84 billion for the year.
