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Snowflake Reports Financial Results for the Third Quarter of Fiscal 2022
Product revenue of $312.5 million, representing 110% year-over-year growth

Snowflake stock jumped after the software maker reported a narrower-than-expected loss for the third quarter while revenue blew past estimates. January-quarter guidance for SNOW stock also came in above expectations.

Snowflake Inc.’s revenue more than doubled in the latest period and the cloud-computing-services company issued a bullish outlook, cheering investors.

The Montana-based company, which went public last year and has yet to reach profitability, posted revenue of $334.4 million on Wednesday to generate a net loss of $154.9 million, beating Wall Street expectations.

Snowflake said revenue jumped 110% from a year earlier to $334.4 million. Analysts had estimated Snowflake revenue at $305.6 million.

Snowflake stock reported a loss of 51 cents a share using generally accepted accounting principles compared with a loss of $1.01 per share a year earlier. Analysts expected the company to report a loss of 60 cents. Snowflake stock does not break out adjusted earnings in its earnings releases.

Snowflake stock gained 9.2% to 339.70 in morning trading on the stock market today. SNOW stock had surged over 15% initially on the earnings release.

In Wednesday’s regular session, SNOW stock fell 7% amid a broad market sell-off. Snowflake stock had gained 12% in 2021 heading into the earnings report.

The provider of cloud-based data analytics software said product revenue rose 110% during the quarter to $312 million, compared with estimates of $284 million.

SnowFlake

Image: Wall Street Journal

SnowFlake Stock Growth

Snowflake, whose investors include Warren Buffett’s Berkshire Hathaway Inc. and Iconiq Capital LLC, an investment firm that manages money for some of the most prominent people in Silicon Valley, also has set high expectations for itself. The company in June said it would hit $10 billion in product revenue in its 2029 fiscal year.

On Wednesday, Snowflake said it had 5,416 customers as of Oct. 31, compared with 4,990 as of July 31. Company officials said 148 customers accounted for more than $1 million in product revenue over the past 12 months, including eight customers that accounted for more than $10 million.

“The 10% revenue beat was the largest since its IPO & Q4 guide was well above, all while SNOW stock hit a milestone of positive operating margin,” said Cowen analyst J. Derrick Wood in a report.

In addition, Snowflake said it now has 148 customers with “trailing 12-month product revenue greater than $1 million,” up from 116 such customers as of July 31.

For the current quarter ending in January, Snowflake forecasts product revenue in a range of $345 million to $350 million, topping estimates of $316 million.

 

Financial Statement:

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Revenue

$

334,441

$

159,624

$

835,553

$

401,584

Cost of revenue

120,786

66,681

324,253

159,684

Gross profit

213,655

92,943

511,300

241,900

Operating expenses:

Sales and marketing

190,971

134,727

540,678

325,267

Research and development

115,900

74,138

343,783

143,949

General and administrative

64,055

53,532

189,846

116,224

Total operating expenses

370,926

262,397

1,074,307

585,440

Operating loss

(157,271

)

(169,454

)

(563,007

)

(343,540

)

Interest income

1,985

1,517

6,787

5,654

Other income (expense), net

1,609

(519

)

9,867

(1,561

)

Loss before income taxes

(153,677

)

(168,456

)

(546,353

)

(339,447

)

Provision for income taxes

1,179

433

1,442

720

Net loss

$

(154,856

)

$

(168,889

)

$

(547,795

)

$

(340,167

)

Net loss per share attributable to common stockholders – basic and diluted

$

(0.51

)

$

(1.01

)

$

(1.84

)

$

(3.63

)

Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted

303,006,685

166,868,200

297,435,637

93,763,599

 

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