Snowflake, 1quarterly revenue up 33% · guidance raised 400bp, shares surge 30%
Snowflake 1reported quarterly revenue growth of 33% year over year and raised its annual guidance by 400basis points. Shares rose 30% after the earnings announcement, and analysts raised their estimates, putting the target price at 277 dollars and the proportion recommending a buy at 85%.
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Snowflake 1reported its quarterly results. The company said revenue increased 33% from the same period a year earlier. It cited demand for AI and increased customer spending on data as factors behind the results.
Snowflake raised its annual guidance by 400basis points. The company said the increase was due to customers spending more than it had anticipated. Analysts updated their estimates to reflect the guidance change.
Shares rose 30% immediately after the earnings announcement. Trading volume appeared to increase immediately after the announcement. The market reflected the results and raised guidance in the share-price movement immediately after the announcement.
The analyst consensus price target was 277 dollars. About 85% of analyst ratings were Buy. Some analysts expressed concern about valuation levels.
The company said that growth in AI-related workloads had increased customers’ data storage and processing needs. Snowflake said its products and services were designed to support the expansion of AI workloads. The report said this had strengthened the “AI flywheel” effect.
Meanwhile, analysts cited the high share price and competition from large technology companies as risks. Some said intensifying competition could make the pace of growth more volatile. Others said the valuation was already reflected in the share price.
Sources: Investing.com
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