Snowflake stock popped on Wednesday after the enterprise software maker reported third quarter earnings and revenue that topped consensus estimates. Full-year product revenue guidance for Snowflake stock came in above expectations.
Meanwhile, Snowflake reported October quarter earnings after the market close.
In Q3, Snowflake said it earned 20 cents per share on an adjusted basis. Analysts polled by FactSet expected Snowflake to earn 15 cents per share.
July-quarter revenue climbed 28% to $942.1 million, the software maker said. Analysts had predicted revenue of $900.3 million.
"RPO grew 55% to $5.7 billion which accelerated from 48% growth and $5.2 billion last quarter," said RBC Capital analyst Matthew Hedberg in a report.
Remaining performance obligations, or RPO, is the total value of contracted revenue that a company has not yet recognized as revenue on its financial statements.
"Management highlighted that their product cohesion and ease of use has positioned them well for new logos wins, expansion in the customer base, and displacing competition," Hedberg added.
For the current quarter ending in January, Snowflake said it expects product revenue in a range of $906 million to $911 million. Meanwhile, analysts had expected product revenue of $893.5 million.
SNOW Stock: Updated Guidance
For the full fiscal year, Snowflake forecast product revenue of $3.43 billion, up 29%, topping estimates of $3.37 billion, or 26% growth..
Meanwhile, Snowflake earlier this year announced a $2.5 billion share repurchase plan through March 2027.
On the stock market today, Snowflake stock popped more than 13% to 146.70 in extended trading.
Snowflake sells data analytics and management tools that run on cloud-computing platforms such as Amazon Web Services, part of Amazon.com.
Snowflake Stock Technical Ratings
Amid investor concern over stiff competition with privately held Databricks and others, SNOW stock has retreated 34% in 2024. Also, analysts with a bearish view say Snowflake lags rivals in developing artificial intelligence-related products.
Further, Snowflake brought in a new chief executive earlier this year.
Also, SNOW stock holds an IBD Relative Strength Rating of 15 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
