Snowflake falls despite Q3 results topping estimates

Investing.com -- Snowflake on Wednesday reported third-quarter results that topped Wall Street estimates as the data analytics’ AI offerings continued to drive new business wins.

Snowflake Inc (NYSE: SNOW) fell 7% in afterhours trading following the report.

For the three months ended Oct. 31, Snowflake reported adjusted earnings of $0.39 per diluted share on revenue of $1.21 billion, topping analyst estimates of $0.35 on revenue of $1.18B.

Product revenue was reported at $1.21B as the company’s new AI-led offerings continued to drive up customer wins.

The company now has 688 customers with trailing 12-month product revenue greater than $1M and 766 Forbes Global 2000 customers, representing 29% and 4% year-over-year growth, respectively.

"Snowflake Intelligence, our enterprise AI agent, saw the fastest adoption ramp in Snowflake history..." the company said.

Remaining performance obligations grew 37% to $7.88B in Q3 from the same period a year earlier.

Snowflake forecast current-quarter product revenue between $1.195B to $1.200B, representing about 27% growth compared to the same prior-year period.

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