Snowflake's Shares Slide After Q2 Earnings Report
Revenue and Earnings Beat Estimates, But Guidance Disappoints
Snowflake Inc. (SNOW) shares fell in extended trading on Wednesday despite the cloud data platform company reporting better-than-expected revenue and earnings for the second quarter of fiscal 2024.
Revenue for the quarter ended July 31 came in at $868.82 million, beating the consensus estimate of $849.704 million, according to Refinitiv data. Product revenue, which accounts for the majority of Snowflake's sales, reached $640.2 million, also surpassing estimates.
Snowflake's earnings per share (EPS) for the quarter was $0.10, beating the consensus estimate of $0.07. However, the company's guidance for the third quarter of fiscal 2024 fell below expectations, with Snowflake forecasting revenue between $960 million and $970 million, while analysts had projected revenue of $983.1 million, according to Refinitiv data.
Key Highlights:
- Revenue: $868.82 million, beating estimates of $849.704 million
- Product revenue: $640.2 million, surpassing estimates
- EPS: $0.10, exceeding expectations of $0.07
- Shares fell nearly 7% in after-hours trading
- Guidance for Q3 fiscal 2024 below analyst expectations
Despite the strong revenue and earnings results, Snowflake's shares fell approximately 6.8% in extended trading on Wednesday, indicating that investors were disappointed by the company's guidance.
Comments