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Shares of Snowflake (NYSE:SNOW) are up over 18% after the company delivered solid results and offered upbeat guidance.
Snowflake reported revenues of $497.2 million, which translates into a growth of 83% YoY, to easily beat the analyst consensus of $467.9 million. Loss per share came in at $0.70, which may not be compared to the expected loss of $0.01.
For this quarter, the company expects to generate $502.5 million (the midpoint of the guidance) from product revenues, slightly above the estimate of $501.1 million. For the full year, the product revenue forecast is raised to the range of $1.91 billion to $1.92 billion from the prior 1.89 billion to $1.90 billion.
A Piper Sandler analyst said SNOW’s results represent a “rainbow in the dark” given a difficult macro environment. He hiked the price target to $220 per share from $164.
“Large deal momentum in Europe, one of the most macro-challenged geographies, was a particularly encouraging sign that data operations and analysis remain a vital and expanding investment category in any environment,” he said in a client note.
A Rosenblatt analyst cut the price target by $10 to $245 to reflect lower comparable multiples and higher interest rates.
“We expect Snowflake to continue its rapid growth at scale, aided by its verticalization strategy, and drive improving margins over the next few years,” the analyst wrote in a client note.
