- Snowflake reported a narrower-than-expected loss for the third quarter, beating expectations.
- It reported a loss of 51 cents per share compared with a loss of US$1.01 per share a year ago.
- In addition, its customers grew to 5,416 from 3,554 a year ago.
Data-analytics firm Snowflake stock sprinted up more than 12% in aftermarket hours after announcing its strong third-quarter revenue growth, helped by increased consumer demand.
Snowflake reported a narrower-than-expected loss for the quarter, beating Wall Street expectations. The stock traded at US$351.15, up 12.91%, at 5:01 pm ET from its previous close.
The San Mateo, California-based software maker reported revenue of US$334.4 million, an increase of 110% from a year earlier. Analysts had expected revenue of US$305.6 million.
It reported a loss of 51 cents per share compared with a loss of US$1.01 per share a year ago, beating analysts’ expectations of a loss of 60 cents.
The Snowflake stock gained more than 26% year-to-date.
Snowflake’s product revenue jumped to US$312 million against an estimate of US$284 million.
In addition, its customers grew to 5,416 from 3,554 a year ago.
For the fourth-quarter ending in January, it forecasts product revenue of US$345 million to US$350 million, surpassing estimates of US$316 million.
Its third-quarter loss was US$154.86 million, or 51 cents per share.
The total revenue grew to US$334.4 million from US$160 million a year.
For the full year, the company expects roughly US$1.13 billion in sales, up from US$1.06 billion to US$1.07 billion previously estimated.
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What investors also may be looking
Because it is a new company, investors would also be interested in other metrics like its net revenue-retention rate besides profitability.
Its net revenue-retention rate was 173% at the end of the quarter on Oct 31.
After its 2020 IPO, Snowflake became one of the most valuable publicly traded tech companies, especially for its potential to compete with the more-established Oracle Corp.
Most analysts have given a positive rating for the stock. Over the years, the San Francisco-based company attracted big investors like Warren Buffett’s Berkshire Hathaway Inc.
The Snowflake stock’s 52-week highest and the lowest stock prices were US$429.00 and US$184.71, respectively. Its current market cap is around US$93.57 billion.
The technology sector has seen rapid growth in the last few years. It is one of the top growth sectors in 2021. However, investors should evaluate the companies carefully before investing in stocks.