Snowflake reported second-quarter revenue of $1.55 billion on Wednesday, beating analyst expectations and prompting the company to raise its full-year revenue forecast, sending its stock up 22% in after-hours trading.
Product revenue, the company's key metric, reached $1.49 billion in the quarter ended July 31, up 37% year over year, the company said. That marked the third consecutive quarter of product revenue growth acceleration, according to the company. Adjusted earnings per share came in at 62 cents. Analysts had expected revenue of $1.48 billion and adjusted earnings of 45 cents per share, according to CNBC .
Snowflake raised its full-year product revenue guidance to $6.07 billion, representing 36% year-over-year growth, up from the $5.84 billion, or 31% growth, it had projected previously, the company said. It also increased its full-year adjusted operating margin outlook to 14.5%, from a prior target of 13.5%.
For the fiscal third quarter, Snowflake said it expects product revenue of between $1.588 billion and $1.593 billion, representing 37% to 38% year-over-year growth. Analysts had expected $1.50 billion in product revenue for the quarter, according to CNBC.
On a GAAP basis, the company recorded a net loss of $191.7 million, or 55 cents per share, an improvement from a loss of $297.9 million, or 89 cents per share, in the year-ago period.
CEO Sridhar Ramaswamy pointed to growing adoption of the company's AI products as a driver of the results. "The results demonstrate how the AI transformation that's sweeping enterprises is compounding Snowflake's advantage," Ramaswamy told MarketWatch . "More and more customers are migrating their data and data work onto Snowflake so that they have an AI-ready data foundation."
CFO Brian Robins attributed the results to strength in the company's core data platform and a step-up in AI revenue. The company's CoCo AI coding agent ended the quarter with more than 9,100 accounts, a gain of over 2,000, while its CoWork product grew to 5,800 accounts, the company said.
Snowflake added 692 net new customers during the quarter, up 32% year over year, bringing its total to more than 14,500 customers globally. Remaining performance obligations — a measure of contracted future revenue — reached $9 billion, up 30% year over year.
