Snowflake's Earnings Beat Expectations, but Stock Falls on Guidance Concerns

Second Quarter Results Impress, but Investors Underwhelmed

WEB Snowflake (NYSE: SNOW) shares plunged nearly 7% in extended trading on Wednesday despite reporting better-than-expected second-quarter results.

Earnings and Revenue Surpass Estimates

The cloud-based data warehousing company reported product revenue of $640.2 million for the quarter, exceeding analysts' consensus estimate of $630 million.

Overall revenue also surpassed expectations, clocking in at $666.7 million compared to the Street's forecast of $659 million.

Guidance Raises Concerns

While the financial results were strong, Snowflake's guidance for the third quarter fell short of expectations.

The company projected a revenue range of $705 million to $715 million, below the consensus estimate of $731 million.

Analysts attributed the stock's decline to the guidance miss, which suggests a potential slowdown in growth.

Strong Growth Momentum

Despite the share price dip, Snowflake continues to demonstrate strong growth momentum.

Product revenue increased by 106% year-over-year, highlighting the increasing demand for cloud-based data solutions.

Credible Sources and Statistics

• Yahoo Finance: "Snowflake stock price sinks after Q2 results despite beating estimates."
• MarketWatch: "Snowflake shares fall in extended trading after earnings beat, guidance miss."
• Snowflake's Q2 2024 financial results: https://ir.snowflake.com/financial-information/quarterly-results