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Snowflake (NYSE:SNOW) fell nearly 7% during early post-market trading on Wednesday, despite revealing second quarter fiscal 2025 results that surpassed estimates and increasing its full-year guidance.
For the quarter ended July 31, Snowflake reported adjusted earnings per share of $0.18, which was more than the consensus estimate of $0.16. It reported revenue of $868.8M versus the estimate of $850.15M.
However, second quarter billings of $779M fell short of the consensus estimate of $831.9M.
“Product revenue was up 30% year-over-year at $829M, while remaining performance obligations were $5.2B, up 48% year-over-year,” said Snowflake CEO Sridhar Ramaswamy. “The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products.”
The data cloud platform provider expects product revenue for the quarter in progress, which ends in October, to range from $850M to $855M, with a mid-point of $852.5M. Consensus estimates called for product revenue of $848M. The company also raised it full-year product revenue guidance to $3.36B from $3.3B. The consensus estimate was $3.3B.
The Bozeman, Mont.-based company also revealed it plans to repurchase an additional $2.5B of stock through March 2027.
