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Market Mover | Snowflake Shares Down Over 11% After Announcing Q2 Financial Results

Moomoo News ·  Aug 22 10:47  · Movers

August 22, 2024 - $Snowflake (SNOW.US)$ shares continued to decrease over 12% to $117 in trading on Thursday.  

The company announced exceeded-expectation financial results for the Q2 of fiscal 2025 after the market close on Wednesday but provided lukewarm future guidance that didn't convince investors in a competitive environment.

Highlights for the Q2 financial results:

  • Product revenue of $829.3 million in the second quarter, representing 30% year-over-year growth;

  • Stockholders - basic and diluted of ($0.95) in this quarter and ($0.69) in the same period last year;

  • Net revenue retention rate of 127%;

  • 510 customers with trailing 12-month product revenue greater than $1 million;

  • 736 Forbes Global 2000 customers;

  • Remaining performance obligations of $5.2 billion, representing 48% year-over-year growth;

  • Authorized the repurchase of an additional $2.5 billion under our stock repurchase program through March 2027.

Outlook for the Q3 and the full year:

  • Snowflake expects Q3 product revenue between $850 million and $855 million, a 22% increase year-over-year growth.

Q3 fiscal 2025 outlook
Q3 fiscal 2025 outlook
  • The company also expects a full-year product revenue of $3.356 billion, a 26% year-over-year increase.

Full year fiscal 2025 outlook
Full year fiscal 2025 outlook

Analyst rating

  • JMP Securities maintained a market outperform rating and lowered its price target to $190 from $235;

  • Needham maintained a buy rating and lowered its price target to $160.00 from $210.00.

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