Snowflake stock soars 18% after large revenue beat

   Shares of Snowflake Inc. surged in Wednesday’s aftermarket action after the data-software company easily topped revenue expectations for its latest quarter. </p> <p>The company posted a fiscal second-quarter net loss of $223 million, or 70 cents a share, whereas it lost $190 million, or 64 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting Snowflake 
   to post a per-share GAAP loss of 56 cents. 

   Snowflake’s revenue rose to $497 million from $272 million, while the FactSet consensus was for $467 million. The company logged $466 million in product revenue, above the $439 million that analysts had been modeling. </p> <p>The company disclosed that it had 6,808 total customers, including 246 customers with trailing 12-month product revenue upwards of $1 million. </p> <p>Chief Executive Frank Slootman highlighted that Snowflake operates under a consumption model rather than a software-as-a-service (SaaS) model, meaning that customers can “throttle” how much they use Snowflake after signing a contract. </p> <p>“We think it’s an advantage in the type of times we’re living in,” he said on the company’s earnings call. </p> <p>The stock gained 18% in after-hours trading.</p> <p>For the fiscal third quarter, executives at Snowflake expect $500 million to $505 million in product revenue, whereas the FactSet consensus called for $502 million. </p> <p>Chief Financial Officer Mike Scarpelli said on the company’s earnings called that amid macroeconomic uncertainty, “the guidance is prudent that we put out.” </p> <p>Looking at the full fiscal year, Snowflake’s management anticipates $1.905 billion to $1.915 billion in product revenue, while analysts were forecasting $1.897 billion. The company’s prior outlook called for $1.885 billion to $1.900 billion. </p> <p>“We believe taking a conservative view is rewarded in this tape, and that’s reflected in the stock in the after-market,” Evercore ISI analyst Kirk Materne wrote following the report. </p> <p>The earnings come as several analysts have taken more...</p>..

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