Snowflake Surges 8% on Earnings Beat as Company Expands Ai Push

Snowflake Shares Popped More Than 8% Chiursday after the data analytics software company Posted Stronger-That-Expected Fourth-Quarter Results,

The company reported adjusted earnings of 30 cents per share on $ 987 million in revenue, surpassing the 17 cents per share and $ 956 million in sales expected by analysts pollled by LSEG. That reflected 27% Year-Over-Year Revenue Growth.

CEO Sridhar Ramaswamy Called Snowflake the “Essential Enterprise Data and AI Company on the planet right now” DURING an interview with CNBC’s Jon Fortt on Wednsday.

Like its peers, snowflake has pushed to offer new artificial intelligence tools to its race for advanced large number of advancuage language models and ai capability accelerates. It announced an expanded partnership with Microsoft Azure to offer access to openai models on wedding.

Last QuarterThe company announced a multiyar partnership With anthropic and said it had agreed to buy startup Datavolo For an undisclosed sum.

“It’s a step up,” Ramaswamy said. “Both these companies really represent the cutting edge of what ai can do and having there accessible … all on top of the data that sits on snowflake, I think uniquly distinguishes us.”

Product Revenue Also Topped Analyst Estimates, Growing 28% to $ 943 Million. That came in ahead of the roughly $ 914 Million lseg estimate. The company also said it anticipates $ 4.28 billion in product reveal for the year, ahead of a $ 4.21 billion estimate.

Guidance for the Current Quarter, howyver, came up short of estimates. Snowflake said it expects products to run $ 955 million to $ 961 million, versus a streetaccount estimate of $ 961 Million.

Goldman Sachs Analyst kash rangan said the results further boosted the firm’s confidence in the revons from new products in the second half of the fiscal year for snowflake and he Views the Company AS SET to Best AS SET to Best A. Generative Ai Winner.

“By expanding the revenue and accessibility of its core data platform to more Avenues Such as (Large Language Models), Hyperscalers, etc., Snowflake can beecome core to the development of AI Applications, Evidensed by 4,000+ Accounts Using Snowflake Ai/Ml and Cortex AI’s Early Momentum, “He Wrote.

Snowflake said it had 11,159 customers during the period, up from 10,618. Analysts Pollled by Factset Had Expected 10,987. The company also said that Chief Financial Officer Michael Scarpelli will retire, but remain in the role until a successor is found.

EXCLUDING CHURSDAY’s Premarket Moves, Shares are up about 8% year to date.

– CNBC’s Jordan Novet Contributed Reporting