Snowflake Inc (NYSE:SNOW), the AI Data Cloud company, stock rallies 34.14% (As on November 21, 11:33:48 AM UTC-4, Source: Google Finance) after the company beat earnings and revenue expectations and increased guidance for the fiscal year. The company has also signed a definitive agreement to acquire Datavolo, the company built to rapidly accelerate the creation, management, and observability of multimodal data pipelines for enterprise AI. With this acquisition, Snowflake will deepen its service in the ‘bronze layer’ of the data lifecycle and will deliver a simple way for data engineering teams to integrate all of their enterprise systems with Snowflake’s unified platform, where they can then unlock data for AI and ML, apps and analytics, and leverage the scale, performance, and built-in governance of the AI Data Cloud. SNOW reported a net loss of $324.3 million in the quarter, up from a loss of $214.3 million one year earlier.
Moreover, the company reported 10,618 paying customers at the end of October, up 369 from three months ago and above the Street’s target of 10,601 customers. One of those customers is the U.S. government, which generates only a very small fraction of its revenue at present. However, the company sees lot of upside in the federal space over the next couple of years. Product revenue for the quarter was $900.3 million, representing 29% year-over-year growth. Net revenue retention rate was 127% as of October 31, 2024. The company now has 542 customers with trailing 12-month product revenue greater than $1 million and 754 Forbes Global 2000 customers, representing 25% and 8% year-over-year growth, respectively. Remaining performance obligations were $5.7 billion, representing 55% year-over-year growth. 542 customers with trailing 12-month product revenue greater than $1 million.
SNOW in the third quarter of FY 24 has reported the adjusted earnings per share of 20 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents. The company had reported the adjusted revenue growth of 28 percent to $942 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $897 million.
Additionally, the company in September 2024, the company has completed a private offering of $1.15 billion aggregate principal amount of 0% convertible senior notes due 2027 (2027 Notes) and $1.15 billion aggregate principal amount of 0% convertible senior notes due 2029 (2029 Notes, and together with the 2027 Notes, the Notes). The total proceeds from the Notes offering were approximately $2.27 billion, net of $31.2 million of debt issuance costs.