Key findings

• Snowflake’s revenue rose in the second quarter from the same period last year, beating analysts’ forecasts, but losses widened due to rising costs.

• The company’s outlook also fell short of analyst estimates compiled by Visible Alpha.

• Snowflake CEO Sridhar Ramaswamy highlighted the company’s opportunities in artificial intelligence.

Snowflake (SNOW) Second-quarter revenue rose year-on-year and exceeded analysts’ forecasts, but losses widened due to rising costs.

The data cloud company reported second-quarter revenue of $868.82 million, up 30% from the same period last year and beating analyst estimates compiled by Visible Alpha. However, Snowflake’s net loss of $317.77 million, or 95 cents per share, was wider than a year earlier and represented a wider loss than analysts expected. Excluding one-time items, adjusted earnings of 18 cents per share beat expectations.

Snowflake outlook misses forecasts

The company expects third-quarter revenue of between $850 million and $855 million and raised its full-year forecast to $3.36 billion. However, both figures fell short of analysts’ expectations.

“The quarter was marked by innovation and product delivery, as well as great traction in the early stages of our new AI products,” Snowflake CEO Sridhar Ramaswamy said in a press release, adding, “With the combination of our platform, the network effect of collaboration and our AI innovations, we have a tremendous opportunity to deliver even greater value to our customers.”

Snowflake shares fell about 7% to $125.70 in extended trading on Wednesday following the release of the company’s earnings report.

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