Snowflake Posts Strong Revenue Growth and Boosts Guidance
Going into Snowflake's (NYSE: SNOW) fiscal second-quarter earnings report on Wednesday afternoon, some investors may have been concerned that the data cloud provider wouldn't be able to post top-line growth high enough to impress investors. Even more, there was a risk that the company's guidance would be softer than expected.
But any concerns about a sudden meaningful slowdown in Snowflake's business were soothed when the company reported strong second-quarter results and even lifted its outlook for fiscal 2023.
Snowflake's fiscal second-quarter revenue grew 83% year over year to about $497 million, crushing a consensus analyst forecast for revenue of approximately $467 million. This revenue was driven by an 83% year-over-year jump in the company's product revenue, which accounts for most of Snowflake's consolidated revenue. Existing customers spent more on the platform, evident by Snowflake's sky-high net revenue retention rate of 171%, and total customers climbed from 6,322 in the first quarter of fiscal 2023 to 6,808.
Source Fool.com
