Snowflake jumps 16% after lifting revenue outlook, Q3 beat

Investing.comNov 21, 2024 12:28 AM

Investing.com - Snowflake Inc (NYSE:SNOW) on Wednesday lifted its 2025 product revenue forecast on the back of data cloud demand and analytics platform as improving economic conditions are enabling clients to allocate more of their budgets to technology spending.

Shares of the data cloud analytics firm jumped around 16% in aftermarket trading.

The company now projects 2025 product revenue of $3.43 billion, compared with earlier issued forecast of $3.36 billion.

Snowflake’s data cloud continues to see robust adoption, particularly among enterprises leveraging AI-powered tools to manage and analyze vast datasets.

For the third quarter, Snowflake reported per share profit of $0.20, 5 cents better than the analyst estimate of $0.15. Revenue for the quarter came in at $942.1 million, ahead of the consensus estimate of $899.3 million.

In a further boost to its AI strategy, Snowflake announced a multi-year partnership with Anthropic to integrate its Claude models for data analysis. The company also completed the acquisition of Datavolo as part of its AI expansion efforts.

Snowflake has been advancing its AI capabilities through the development of AI agents via its Snowflake Intelligence platform. AI agents are seen as the next step beyond copilots, capable of handling routine tasks independently on behalf of a person.

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