Snowflake, AWS 5year 60hundred-million-dollar commitment sends shares 30surging more than %

Snowflake 5on 28, 1saw its shares rise more than % after announcing quarterly results and a new spending commitment with AWS. The company said in its quarterly results that product revenue increased % year over year. In the same quarter, net revenue retention reached 30%34, marking its highest level in 126years1.

The company said the improvement in results was driven by the adoption of AI workloads and increased spending per customer. It also noted in its results commentary that platform usage expanded as customers increased their AI-related usage. The quarterly announcement materials identified AI-related demand as a key driver of growth in results.

Snowflake and AWS announced a 5year 60spending commitment worth hundred-million dollars. The company said the agreement was intended to strengthen its long-term customer relationship. The commitment was described as being based on spending on cloud-based data and AI workloads.

The stock reacted quickly as buying flowed in immediately after the earnings and AWS commitment announcements. Some analysts noted that the company’s price-to-sales (P/S) ratio was 17times, a high level. The analyst said that figure may already reflect a substantial amount of good news.

In its quarterly earnings commentary, the company reiterated that increased AI adoption had driven product revenue and expanded spending per customer. According to the company, the metrics for the quarter show that AI demand is having a substantial impact on its revenue mix. The stock posted a strong gain on the same day following the announcement.