Snowflake shares gain ground in late trading after the company posted better than expected growth for the fiscal second quarter ended July 31. Management raised its full-year forecast for product sales for a second time.
stock (ticker: SNOW) rose 5.5% in late trading to $299.28.
For the quarter, the cloud-based data warehouse software company reported revenue of $272.2 million, up 104% from a year ago, and ahead of the Street consensus of $256.5 million. Product sales were $254.6 million, up 103%, above the company’s projected $235 million to $240 million range.
Snowflake posted an operating loss for the quarter of $21.9 million on a non-GAAP basis, resulting in a non-GAAP operating margin of -8%, better than the company’s projection of -19%. Adjusted free cash flow was $2.8 million, the third straight quarter that this measure was in the black. On a GAAP basis, the company lost 64 cents a share in the quarter.
The company ended the quarter with performance commitments remaining, a measure of future work, of $1.5 billion, up 122% from a year ago.
Snowflake (ticker: SNOW) said it now has a total of 4,990 customers, 116 of them with product sales of more than $1 million in 12 months.
“Snowflake saw continued momentum in the second quarter with triple-digit product sales growth, reflecting the strength of customer consumption,” Snowflake Chairman and CEO Frank Slootman said in a statement. Slootman noted that retention of net revenue, a measure of recurring revenue, was 169%, up from 168% in the April quarter and 158% a year ago.
For the October quarter, Snowflake sees product sales between $280 million and $285 million, up 89% to 92% from a year ago, with a non-GAAP operating margin of -7%.
For the full year ending January 2022, the company now sees product sales ranging from $1.06 billion to $1.07 billion, up between 91% and 93% per share, above its previous forecast of $1.02 billion. to $1.035 billion, the second time it has raised guidance for the year.
Snowflake sees a full-year non-GAAP operating margin of -9%, a significant improvement from its previous forecast of -17%. The company sees an adjusted free cash flow margin of 7%. Snowflake expects a non-GAAP product gross margin of 73%, up from 69% in fiscal 2021 and 63% in fiscal 2020.
Write to Eric J. Savitz at firstname.lastname@example.org