Snowflake Inc. (NYSE:SNOW) reported strong second-quarter results that surpassed Wall Street expectations, driven by increasing demand for its data analytics services fueled by AI advancements. Despite raising its full-year guidance, shares of the company dropped by over 13% intra-day today.
For the quarter, Snowflake reported earnings per share of $0.19, down from $0.25 a year ago, while revenue grew to $868.8 million from $674 million in the previous year. Both figures exceeded analyst predictions of $0.16 earnings per share and $851.6 million in revenue.
Product revenue reached $829.3 million, outpacing the Street estimate of $808.4 million. However, the 2.6% revenue beat was below the company’s recent average of 3.7% for the past eight quarters.
Snowflake highlighted the quarter as a period of significant innovation, pointing to the strong momentum for its new AI products as a key driver of growth.
For the current quarter, the company projected product revenue to range between $850 million and $855 million, compared to the Street expectations of $851 million.
Looking ahead, Snowflake raised its full-year fiscal 2025 product revenue forecast to $3.36 billion, reflecting a 26% year-over-year growth, slightly higher than the previous forecast of $3.3 billion.