Snowflake surges as product revenue spikes 30%, enters deal with Anthropic
Nov. 20, 2024 4:29 PM ET
By: Brandon Evans, SA News Editor
 Sundry Photography/iStock Editorial via Getty Images
Snowflake (NYSE: SNOW) reported year-over-year product revenue growth of nearly 30% when it reported third quarter fiscal 2025 financial results on Wednesday after the market closed.
Shares spiked 18% during early post-market trading after its results and outlook surpassed expectations. The company also announced an acquisition and a new partnership with Anthropic.
For the quarter ended October 31, Snowflake reported adjusted earnings per share of $0.20 versus the consensus estimate of $0.15. It reported revenue of $942.1M versus the consensus of $898.46M. Product revenue of $900.3M also surpassed the estimate of $856.6M.
For the quarter in progress, Snowflake forecast product revenue ranging from $906M to $911M, which is well beyond the estimate of $890.7M. It expects full-year product revenue to hit $3.43B versus the estimate of $3.36B.
It also reported remaining performance obligations of $5.7B, which represent 55% year-over-year growth.
"Snowflake delivered a strong third quarter, with product revenue of $900M, up 29% year-over-year, and remaining performance obligations of $5.7B, with year-over-year growth accelerating to 55%," said Snowflake CEO Sridhar Ramaswamy.
The Bozeman, Mont., cloud-based data storage company also announced it plans to acquire Datavolo, which accelerates the creation, management and observability of multimodal data pipelines for enterprise AI.
"By bringing Datavolo into the Snowflake fold, we are expanding how much of the data lifecycle Snowflake captures - unlocking both simplicity and cost savings for our customers, without any sacrifice to data extensibility," said Ramaswamy.
In a busy day for the company, Snowflake also confirmed it had signed a multi-year strategic partnership with Anthropic. The deal allows Snowflake to offer Anthropic's Claude large language models to customers. Claude 3.5 Sonnet model will be available within the security and governance perimeters of Snowflake on AWS ( AMZN).
"Our partnership with Anthropic represents a massive leap forward in expanding on our promise to provide thousands of global customers with easy, efficient, and trusted AI for a holistic set of enterprise use cases," said Christian Kleinerman, EVP of Product for Snowflake. |
