Snowflake's Strong Sales Growth and AI-Driven Demand Propel Revenue Above Estimates
Originally Published 2 years ago — by Yahoo Finance
Snowflake Inc., a software maker, has provided a product sales outlook for the current quarter that surpasses expectations, indicating a potential stabilization of revenue after a significant growth slowdown. The company expects product revenue to increase by approximately 30% to as much as $721 million, beating analysts' average estimate of $702.2 million. Snowflake's revenue expansion has decelerated due to companies scrutinizing their software spending, but the CEO attributes the positive outlook to a "broadly stabilizing macro environment" and increased demand for the company's software driven by artificial intelligence workflows. The company's stock rose about 7% in after-hours trading.
