Snowflake Inc. (SNOW), a company that provides a cloud-based data platform, has surged 16.24% in aftermarket trading session. As a result, SNOW stock is trading at 361.50 at the time of the writing. The surge could be attributed to the announcement of quarterly results. On Wednesday, SNOW closed the day at $311 after sliding 8.53% during the regular trading session.
Why SNOW Surging?
In the late hours of Wednesday, SNOW released the operational results for the third quarter of the fiscal year 2022. The quarter ended on 31st October. The company generated total revenue of $334.4 million during the quarter against $159.6 million during the same quarter of 2020. The total operating expenses for the period were $370.9 million against $262.3 million for the same period of 2020. The net loss suffered by the company during the quarter was $154.8 million (or $0.51 per basic and diluted share) against $168.8 million (or $1.01 per basic and diluted share) for the same quarter of 2020.
Financial Guidance
Alongside the operational results, SNOW also released the financial guidance for the full-year fiscal 2022. The company expects to generate product revenue in the range of $1.126 billion to $1.131 billion during the full year. The product gross profit margin is expected to stand at 74% during the fiscal. The operating loss margin could be about 4%, while the margin of adjusted free cash flow could hover around 8% during the quarter.
Executive Commentary
Frank Slootman, Chairman and CEO of SNOW, while commenting on the results said that the company saw the momentum accelerate during the third quarter, as its product revenue grew over 110% on a year-over-year basis. He said that the vertical industry focus by the company is an important evolution of its selling motion. He hoped that the company would continue to see broad industry options n the future.
Future Outlook for SNOW
The last six months have seen SNOW stock surge by approximately 30%. But during more recent days, the stock has amassed losses. However, as some of the past developments depict, the company is capable of recovering in a quick time. So, potential investors should keep a close eye on the fluctuations of SNOW stock.
