Snowflake shares surged 17% in extended trading on November 20, 2024, following the release of third-quarter earnings that exceeded analyst expectations. The company reported a 28% year-over-year revenue increase for the quarter ending October 31, totaling $3.43 billion.
However, the net loss widened to $324.3 million, or 98 cents per share, compared to a loss of $214.3 million, or 65 cents per share, in the same quarter last year.
In a significant development, Snowflake announced a multi-year partnership with Anthropic, an AI startup backed by Amazon, allowing customers to leverage Anthropic's large language models for enhanced AI applications. Additionally, Snowflake is set to acquire startup Datavolo, although financial terms remain undisclosed.
The company also raised its annual product revenue forecast to $3.43 billion for 2025, up from a previous estimate of $3.36 billion. For the fourth quarter, Snowflake anticipates product revenue between $906 million and $911 million, surpassing the average analyst estimate of $884.5 million.
Executives will elaborate on the results during a conference call scheduled for 5 p.m. ET.