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
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