Snowflake Inc.’s stock rocketed 7.6% higher in Wednesday’s after-hours action as the software company delivered upbeat results and impressed with its forecast.
The company logged a fiscal third-quarter net loss of $214 million, or 65 cents a share, compared with a loss of $201 million, or 63 cents a share, in the year-earlier period.
On an adjusted basis, Snowflake
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posted earnings per share of 25 cents, up from 11 cents a year before, whereas analysts tracked by FactSet were modeling 16 cents.
Revenue rose to $734 million from $557 million, while the FactSet consensus was for $714 million. Product revenue was $698 million, while analysts were looking for $669 million.
“These results reflect strong execution in a broadly stabilizing macro environment,” Chief Executive Frank Slootman said in a release.
Evercore ISI analyst Kirk Materne wrote that management’s “commentary around the stabilizing macro environment combined with the higher [fiscal fourth-quarter] guide gives us more confidence that [the fiscal fourth quarter] could ultimately represent a bottom in terms of normalized growth.”
He noted that the comment from Snowflake’s executive team dovetailed with what other “hypergrowth” cloud and software-as-a-service names have been saying lately.
The company reported $3.7 billion in remaining performance obligations for the latest quarter, up 23% on a year-over-year basis. Snowflake’s net revenue retention rate was 135%, and the company had 436 customers with trailing-12-month product revenue in excess of $1 million.
For the fiscal fourth quarter, the company expects $716 million to $721 million in product revenue. The FactSet consensus was for $696 million in product revenue.