By Michael Dabaie
Snowflake Inc. shares were up 14% to $334.16 around midday.
The provider of cloud data warehousing software Wednesday after the market close reported third-quarter total revenue was $159.6 million, up from $73 million a year earlier. FactSet consensus was for $147.7 million.
Product revenue was $148.5 million, which the company said was up 115% year-over-year. FactSet consensus was for $136.6 million.
Loss was $168.9 million, wider than a year earlier loss of $88.1 million.
Loss per share was $1.01, versus a loss of $1.92 in the year-ago period. Weighted-average shares were about 166 million, from about 46 million a year earlier.
Snowflake had its initial public offering in September and had an IPO pricing at $120.
"We are pleased with our performance this first quarter as a public company," said Chief Executive Frank Slootman. "The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies."
Snowflake guided for fourth-quarter product revenue of $162 million to $167 million and fiscal-year product revenue of $538 million to $543 million.
J.P. Morgan said in a note that Snowflake posted a healthy third quarter with product revenue exceeding its forecast. "The combination of growth and scale remains elite as it is remarkable to see this revenue stream approach a $600M annual run-rate with triple-digit growth," J.P. Morgan said in its note.
J.P. Morgan boosted its price target to $250 from $247 and rates the stock at Neutral.
"Snowflake could grow into and beyond the current valuation in future years, but it is difficult to see material outperformance within the horizon of our price target," J.P. Morgan said in its note.
Mizuho Securities USA said that fourth-quarter guidance was "roughly in line, but we believe it will likely prove conservative."
"We maintain that SNOW is enabling customers to transform from large data stores to data-driven organizations, and that companies will increasingly standardize on SNOW. Although SNOW already trades at a substantial premium, we believe the shares can go higher as the company continues to grow at elevated rate" over the next twelve months and beyond. Mizuho reiterated its Buy rating and boosted its price target to $310 from $300.
Write to Michael Dabaie at email@example.com
(END) Dow Jones Newswires