Earnings results: Snowflake stock surges 18% after big earnings beat

Snowflake’s revenue rose from $272 million to $497 million, while the FactSet consensus was for $467 million. The company’s product revenue of $466 million was higher than the $439 million modeled by analysts.

The company disclosed that it has a total of 6,808 customers, including 246 customers with product revenue exceeding $1 million in the past 12 months.

CEO Frank Slootman emphasized that Snowflake operates on a consumption model rather than a software-as-a-service (SaaS) model, meaning customers can “limit” the amount of Snowflake they can use after signing a contract .

“We see this as an advantage of our time,” he said on the company’s earnings call.

The stock rose 18% in after-hours trading.

In the fiscal third quarter, Snowflake executives expected product revenue of $500 million to $505 million, versus the FactSet consensus call for $502 million.

Chief Financial Officer Mike Scarpelli said of the company’s earnings that, amid macroeconomic uncertainty, “our guidance is prudent.”

Looking at the full fiscal year, Snowflake management expects product revenue of $1.905 billion to $1.915 billion, compared to analysts’ forecast of $1.897 billion. The company had expected $1.885 billion to $1.900 billion.

“We believe it is worth taking a conservative view on this tape, which is reflected in aftermarket stocks,” Evercore ISI analyst Kirk Materne wrote after the report.

Several analysts have taken a more cautious view on Snowflake stock this month, with at least two analysts worried about competition from privately held Databricks and macroeconomic pressures affecting clients Consumption.

Analysts were more optimistic earlier in the summer, as at least three Snowflake stocks upgraded in June.