Snowflake (NYSE:SNOW) reported an impressive start to the fiscal year, with first-quarter revenue surpassing expectations and driving a 7.5% rise in its share price.
The cloud-based data warehousing firm announced quarterly revenue of $828.7 million, marking a 33% increase from the same period last year and significantly higher than the consensus estimate of $786.82 million.
Despite reporting adjusted earnings per share (EPS) of $0.14, which fell short of the $0.18 estimate by $0.04, investors were buoyed by the strong revenue figures. This robust performance was primarily fueled by a 34% year-over-year (YoY) growth in product revenue, which reached nearly $790 million.
Looking ahead, Snowflake projected Q2 product revenue to be between $805 million and $810 million, representing a 26-27% YoY growth.
The company’s net revenue retention rate stood at 128%, reflecting high customer satisfaction and increased usage. Snowflake also saw significant growth in its customer base, with 485 customers generating over $1 million in trailing 12-month product revenue, a 30% increase YoY.
Additionally, remaining performance obligations surged to $5.0 billion, a 46% YoY increase, highlighting strong future revenue potential. CEO Sridhar Ramaswamy credited the robust quarterly results to the core business strength and rising interest in Snowflake’s AI products.
In a move underscoring its commitment to innovation in the AI space, Snowflake also announced plans to acquire technology assets and key personnel from TruEra, an AI observability platform.