Snowflake (NYSE:SNOW) reported a solid start to the fiscal year with first-quarter revenue exceeding expectations, sending shares up 7.5% in response to the news.
The cloud-based data warehousing company announced that its revenue for the quarter reached $828.7 million, a 33% increase from the same period last year, and well above the consensus estimate of $786.82 million.
The company’s adjusted earnings per share (EPS) came in at $0.14, which was $0.04 below the estimate of $0.18. Despite the EPS miss, investors focused on the company’s robust revenue performance, which was driven by a 34% year-over-year (YoY) growth in product revenue, totaling nearly $790 million.
The company guided for Q2 product revenue in the region of $805-810 million, representing 26-27% YoY growth.
Snowflake’s net revenue retention rate stood at 128%, indicating strong customer satisfaction and expanded usage.
The company also reported significant growth in its customer base, with 485 customers now generating over $1 million in trailing 12-month product revenue, marking a 30% increase YoY.
Remaining performance obligations surged to $5.0 billion, a 46% YoY increase, signaling future revenue potential. The company’s CEO, Sridhar Ramaswamy, attributed the strong quarterly performance to the company’s core business strength and the growing interest in its AI products.
In addition to its financial results, Snowflake announced its plans to acquire technology assets and key personnel from TruEra, an AI observability platform, further emphasizing its commitment to innovation in the AI space.
