The report sent Snowflake shares fractionally higher in late trading. CEO Frank Slootman remarked that “Snowflake saw continued momentum in Q2 with triple-digit growth in product revenue, reflecting strength in customer consumption.” Added Slootman, “While increasing net revenue retention rate to 169%, we also boosted gross margin and operating margin efficiency while our adjusted free cash flow was positive for the third quarter in a row.” Revenue in the three months ended in July more than doubled, year over year, to $272.2 million, yielding a net loss of 64 cents a share. Analysts had been modeling $256 million and a net loss of 64 cents per share. That total revenue includes product revenue of $254.6 million, up 103%, and ahead of the company’s forecast for $235 million to $240 million. Snowflake said its remaining performance obligation, a measure of backlog, rose 122%, year over year, to $1.5 billion. For the current quarter, the company projected product revenue to rise to $280 million to $285 million, representing growth of 89% to 92%. That is above consensus for product revenue of $272 million. For the full year, the company sees product revenue rising to a range of $1.06 billion to $1.07 billion. That compares to the company’s prior forecast for $1.02 billion to $1.035 billion, and consensus of $1.018 billion.
