Data cloud analytics firm Snowflake beat expectations in its fiscal second quarter, but the company’s stock still dropped amid a widening net loss compared to the same period in 2023.
Snowflake reported revenue of $868 million, marking a 29% year-over-year jump and coming above analysts’ estimates of $852 million. Its adjusted earnings per share came at $0.18 versus $0.16 per share expected.
The company also adjusted its prediction for the third fiscal quarter and full-year forecast. It now expects revenue between $850 million and $855 million for the current quarter while raising its prior forecasts for fiscal 2025 from $3.30 billion to $3.36 billion.
Snowflake CEO Sridhar Ramaswamy attributed the positive results to “AI innovations,” saying that the company now has a “huge opportunity ahead to deliver even greater value to our customers.”
“The quarter was hallmarked by innovation and product delivery and great traction in the early stages of our new AI products,” Ramaswamy added.
However, the thing that caught the attention of investors was the company’s rising losses. It reported a net loss of $317 million in the fiscal second quarter compared to $227 million from a year ago.
Snowflake’s shares closed at $135.06 on Wednesday before sliding by 7.86% in the after-market trading. The stock was already 28.59% down year-to-date before the recent drop.