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Snowflake Q2 Earnings: Revenue Beat, EPS Beat, Raised Guidance, Additional $2.5B Buyback, 'Great Traction' With AI Products

Benzinga ·  Aug 22 04:29  · Earnings

$Snowflake (SNOW.US)$ reported second-quarter financial results that topped analyst expectations after the market close on Wednesday. Here's a look at the key highlights from the quarter.

Q2 Earnings: Snowflake reported second-quarter revenue of $868.823 million, beating the consensus estimate of $849.704 million, according to Benzinga Pro.

The data cloud company reported adjusted earnings of 18 cents per share, beating analyst estimates of 16 cents per share.

Total revenue was up 29% year-over-year. Product revenue came in at $829.3 million, up 30% year-over-year. Net revenue retention rate was 127% in the quarter.

Remaining performance obligations totaled $5.2 billion, up 48% year-over-year. Snowflake said it ended the quarter with 510 customers with trailing 12-month product revenue greater than $1 million.

"The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products. With the combination of our platform, the network effect of collaboration and our AI innovations, we have a huge opportunity ahead to deliver even greater value to our customers," said Sridhar Ramaswamy, CEO of Snowflake.

Snowflake's board authorized an additional $2.5 billion for its share repurchase program, and extended the duration through March 2027. The company said it had $491.9 million remaining on its buyback as of July 31.

Outlook: Snowflake sees third-quarter product revenue in the range of $850 million to $855 million, up approximately 22% on a year-over-year basis.

The company also raised its full-year product revenue expectations. Snowflake now expects full-year product revenue of $3.356 billion, up 26% year-over-year.

SNOW Price Action: Snowflake shares were down 8.02% in after hours, trading at $124.23 at the time of publication Wednesday.

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