Snowflake Inc (NYSE:SNOW) stock surges 18.55% (As on August 28, 11:20:36 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second-quarter earnings and revenue and issued upbeat guidance for the rest of the year. The company has reported a net loss of $297.9 million in the quarter, down from the $317.7 million net loss it delivered in the year-ago quarter. During the quarter, Snowflake hosted its annual customer conference, Snowflake Summit, where it outlined its AI strategy, centered around the latest version of its core data warehouse and its family of Cortex large language models. There, it unveiled Cortex AISQL, a new model that allows data analysts to use standard Structured Query Language commands to query data across diverse formats, including images, audio and long-form text files. In addition, Snowflake announced it had acquired a company called Crunchy Data Solutions Inc., which has advanced vector database capabilities to make unstructured data more searchable.
Further, the company have extended our connectivity platform with Snowflake OpenFlow, making it easy to bring in structured, unstructured, batch or streaming data. Built on the acquisition of Datavolo, OpenFlow provides seamless access to all enterprise data and now supports change data capture from Oracle through a strategic partnership.
Moreover, Product revenue for the quarter was $1.09 billion, representing 32% year-over-year growth. Net revenue retention rate was 125% as of July 31, 2025. The company now has 654 customers with trailing 12-month product revenue greater than $1 million and 751 Forbes Global 2000 customers, representing 30% and 5% year-over-year growth, respectively. Remaining performance obligations were $6.9 billion, representing 33% year-over-year growth. The non GAAP operating margin increased to 11%, reflecting the focus on efficiency and operational growth.
SNOW in the second quarter of FY25 has reported the adjusted earnings per share of 35 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents. The company had reported the adjusted revenue growth of 32 percent to $1.1 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $1.09 billion.
Snowflake, which sells cloud-based data warehouse tools for enterprises, guided for revenue of between $1.125 billion and $1.13 billion in the current quarter, well ahead of the Street’s forecast of $1.17 billion in sales. In addition, the company upped its full-year revenue forecast to $4.395 billion at the midpoint of its range, up from $4.325 billion on its last earnings call three months earlier.