Snowflake reported better-than-expected third quarter earnings and CEO Frank Slootman said the company sees "a broadly stabilizing macro environment."
The company reported a third quarter net loss of $214.25 million on revenue of $734.17 million, up 31.8% from a year ago. Non-GAAP earnings for the third quarter were 25 cents a share, compared to estimates of 16 cents a share.
As for the outlook, Snowflake said product revenue would be up 29% to 30% in the fourth quarter compared to a year ago. For fiscal 2024, Snowflake sees product revenue of $2.65 billion, up 37% from a year ago.
The company said it had 436 customers with trailing 12-month revenue of more than $1 million.
On a conference call with analysts, Slootman said:
"Generative AI is at the forefront of customer conversations, which in turn drives renewed emphasis on data strategy in preparation of these new technologies. We said it many times, there's no AI strategy without a data strategy. The intelligence we're all aiming for results in the data, hence the quality of that underpinning is critical."
"One of the interesting things is that customers are now getting preoccupied with their data estates because they have to get them into shape where they can productively take advantage of the newer technologies."