Snowflake raises annual sales outlook to $6.07 billion on AI demand
This digest was compiled by AI from multiple sources — links to the originals are below.
Snowflake Inc. raised its annual product revenue outlook to about $6.07 billion, surpassing analysts' estimates of $5.86 billion. The company reported 37% growth in quarterly product revenue to $1.49 billion and said more than 2,000 new customer accounts adopted its AI coding assistant CoCo. Shares jumped more than 20% in extended trading after closing at $305.84.
Key Facts
- Snowflake raised its annual product revenue outlook to about $6.07 billion, up from its May forecast and above the $5.86 billion analyst average.
- Quarterly product revenue rose 37% to $1.49 billion, beating the $1.42 billion average estimate.
- More than 2,000 new customer accounts adopted the AI coding assistant CoCo during the quarter, bringing the total to 9,100.
- Shares jumped more than 20% in extended trading after closing at $305.84, and the stock had climbed 39% this year through the close.
- Remaining performance obligations were $9 billion, below the average estimate of $9.37 billion.
Revenue Outlook
Snowflake raised its product revenue forecast for the fiscal year ending in January to about $6.07 billion. The new outlook exceeds the $5.86 billion average analyst projection and is an increase from the company's May forecast. Product sales account for about 95% of Snowflake's total revenue.
AI Adoption
Snowflake is integrating artificial intelligence across its cloud data platform, including the CoCo coding assistant. More than 2,000 customer accounts started using CoCo during the quarter, bringing total adoption to 9,100 accounts. Investors have grown enthusiastic about Snowflake's ability to boost business through additional AI products.
Market Reaction
Snowflake shares jumped more than 20% in extended trading after closing at $305.84. The stock had climbed 39% this year through the close. Benchmark Co. analyst Yi Fu Lee wrote that Wall Street expectations for Snowflake have increased materially and investors are likely to focus on the durability of AI-driven consumption trends.
1 source
Snowflake raises annual sales outlook to $6.07 billion on AI demand
