Snowflake raises annual product revenue forecast, increases share buyback amount
The Snowflake Inc. logo, an American computing-based data cloud company that has a strong partnership with Salesforce, displayed on their stand during the Mobile World Congress 2023 on March 2, 2023, in Barcelona, Spain.
Joan Cros | Nurphoto | Getty Images
Data cloud analytics firm Snowflake on Wednesday raised its forecast for full-year product revenue, as it attracts more clients to its cloud platform owing to advancements in artificial intelligence.
However, shares of the firm fell more than 7% in extended trading. D.A. Davidson analyst Gil Luria attributed the drop to the company not pairing the rise in revenue projections with a rise in margin forecast.
The company now expects product revenue of $3.36 billion for fiscal 2025, up from its prior forecast of $3.30 billion.
The company also authorized an additional $2.5 billion under its share buyback program through March 2027.
Snowflake was the victim of a data breach earlier this year which saw large amounts of customer data stolen from firms like Ticketmaster-parent Live Nation and telecom titan AT&T.
Snowflake has seen a rise in demand for its Data Cloud platform as AI integration has helped enterprises streamline their data quickly and efficiently.
The company reported product revenue of $829.3 million for the second quarter ended July 31, beating estimates of $808.4 million, according to LSEG data.
Snowflake has been actively pursuing AI by creating its own large language model called Snowflake Arctic, and partnering with Facebook-parent Meta to use its Llama models and boost the appeal of the company’s cloud platform.
