Snowflake Q1 Earnings: Revenue Beat, EPS Miss, 'Strong Customer Interest' For AI Products And More

Author: Adam Eckert | May 22, 2024 04:21pm

Snowflake Inc (NYSE:SNOW) reported financial results for the first quarter after the market close on Wednesday. Here’s a look at the key metrics from the quarter.

Q1 Earnings: Snowflake said first-quarter revenue increased 33% year-over-year to $828.7 million, beating the consensus estimate of $785.87 million, according to Benzinga Pro. The data cloud company reported quarterly earnings of 14 cents per share, missing analyst estimates of 18 cents per share.

Product revenue came in at $789.6 million, up 34% year-over-year. Net revenue retention rate was 128% in the first quarter. Remaining performance obligations totaled $5 billion, up 46% year-over-year. Snowflake said it ended the quarter with 485 customers with trailing 12-month product revenue of more than $1 million.

Snowflake also announced it intends to acquire certain technology assets and hire key employees from TruEra, an AI observability platform. 

“Our core business is very strong. Our AI products, now generally available, are generating strong customer interest. They will help our customers deliver effective and efficient AI-powered experiences faster than ever,” said Sridhar Ramaswamy, CEO of Snowflake.

Outlook: Snowflake sees second-quarter product revenue in a range of $805 million to $810 million, up 26% to 27% on a year-over-year basis. The company expects full-year product revenue of $3.3 billion, up 24% year-over-year.

Management will hold a conference call to discuss its quarterly results at 5 p.m. ET.

SNOW Price Action: Snowflake shares were up 6.50% after hours at $173.26 at the time of publication Wednesday, according to Benzinga Pro.

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Posted In: SNOW