SNOW - Snowflake Provides A Sigh Of Relief But Only Thanks To Strong AI Product Demand | Benzinga
After the bell on Wednesday, Snowflake Inc (NYSE: SNOW) missed first quarter profit expectations while revenue surpassed estimates thanks to strong AI product demand. However, to Wall Street’s delight, the cloud storage provided guided for second-quarter product revenue above Wall Street estimates and raised its expectations for the year, riding the AI hype wave.
Fiscal First Quarter Highlights
For the quarter that ended on April 30th, Snowflake reported that revenue grew 33% YoY to $828.7 million, while product revenue alone rose 34% YoY to $789.6 million, both surpassing Wall Street estimates. Revenue retention rate was 128%, down from last year’s comparable quarter when it amounted to 151% and January quarter's 131%.
Adjusted earnings per share dropped 6% YoY to 14 cents, which was below analyst estimates.
A boosted outlook still implies a margin deceleration.
To the delight of Wall Street, Snowflake lifted its product revenue guidance for fiscal 2025. For the year that runs from February 1, 2024 ...