Sridhar Ramaswamy, CEO of Snowflake and previously co-founder and CEO of startup Neeva, speaks on the Collision convention in Toronto on June 21, 2022.
Eóin Noonan | Sportsfile | Collision | Getty Photos
Shares of Snowflake fell 13% on Thursday after the info cloud analytics firm launched fiscal second-quarter 2025 earnings that beat Wall Avenue’s estimates however confirmed decelerating product income progress in comparison with previous quarters.
Snowflake reported $869 million in income, above the $851 million anticipated by analysts polled by LSEG. The corporate reported $829.3 million in product income, which accounts for many of Snowflake’s gross sales, up 30% 12 months over 12 months. However that marked a slowdown from the 34% year-over-year bump reported in the course of the fiscal first quarter.
The corporate’s internet loss widened to $317 million, or a 95 cent loss per share, from $227 million, or a lack of 69 cents per share, throughout the identical interval a 12 months earlier.
Morgan Stanley analysts mentioned Snowflake’s outcomes have been good, “however maybe not sufficient.” They mentioned the corporate’s smaller product income beat and deceleration in progress will not encourage weary buyers.
The analysts suppose Snowflake’s new generative synthetic intelligence portfolio will finally contribute to topline outperformance. Within the meantime, it must depend on its core knowledge warehousing enterprise.
“A 2% product income beat in Q2, down from 5% in Q1, with product income progress dipping additional to 29.5% YoY,” possible sows “sufficient doubt within the investor dialog to maintain shares underneath stress within the near-term,” the analysts wrote in a be aware Thursday.
Analysts at Barclays mentioned Snowflake’s second-quarter outcomes ought to “not be a significant catalyst both manner” for the corporate’s funding case. They maintained their equal weight ranking on the inventory.
The analysts mentioned buyers have been watching intently to see whether or not the corporate’s product income took a cloth hit due to fallout from a cyberattack and the CrowdStrike outage that occurred in the course of the quarter. They felt these potential massive headwinds didn’t play out, which is a constructive for the corporate.
“True, 30% y/y product progress is slower than the 33-34% stage we noticed the previous 2 quarters. Nevertheless, towards all of the concern going into these outcomes we see the 30% stage and raised information as very respectable, particularly given the decrease valuation,” the analysts wrote in a be aware Wednesday.
–CNBC’s Michael Bloom contributed to this report
