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Snowflake’s shares surge higher on blowout earnings, a promising acquisition and new AI partnership
- Cloud data warehouse company Snowflake Inc. saw its stocks rise by over 20% in late trading on Thursday following a massive earnings and revenue beat.
- The company also announced plans to acquire data integration start-up Datavolo and secured a new artificial intelligence partnership with Anthropic PBC, further adding to investor's optimism.
- For Q3 2021, Snowflake reported a 20 cents per share in earnings, beating Wall Street's consensus estimate of 15 cents. While the company saw a net loss of $324.3 million in the quarter, up from a loss of $214.3 million in the same period the previous year.
- Snowflake managed to add 369 paying customers to its roster for Q3 2021, taking its total to 10,618.
- As companies increasingly look to adopt cloud computing services, Snowflake has positioned itself well in a highly competitive sector, and it remains to be a rival to key partners like AWS and Microsoft, which provide the company with its underlying infrastructure.
- Snowflake expects to achieve total product revenue of $3.43 billion in fiscal 2025, implying YoY growth of 29%.
- Another boost to Snowflake came from the acquisition of data analytics start-up Night Shift Development Inc., which focuses on the U.S. public sector.
- The acquisition of Datavolo will enable Snowflake to create more versatile data pipelines for its own customers.
- Moreover, a multiyear partnership with Anthropic aims to help improve the ability of Snowflake's AI agents to analyze data and run ad-hoc data analytics.
- Despite after-hours gains, Snowflake's stock is still down 35% in the year to date, compared to a gain of 24% in the broader S&P 500 index.
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