Snowflake Beats Q3 Earnings Estimates On Top And Bottom Line, Shares Surge

Snowflake Inc SNOW reported third-quarter financial results Wednesday after the bell. Here's a rundown of the report and a look at what's driving the action after hours.

Q3 Earnings: Snowflake said third-quarter revenue increased 32% year-over-year to $734.17 million, which beat the consensus estimate of $712.78 million, according to Benzinga Pro. The company reported quarterly earnings of 25 cents per share, which beat analyst estimates of 16 cents per share.

Product revenue came in at $698.5 million, up 34% year-over-year. Remaining performance obligations totaled $3.7 billion, up 23% year-over-year. Snowflake said it ended the quarter with 436 customers with trailing 12-month product revenue of more than $1 million. 

"During Q3, product revenue grew 34% year-over-year to reach $698 million and non-GAAP adjusted free cash flow was $111 million, representing 70% year-over-year growth. These results reflect strong execution in a broadly stabilizing macro environment," said Frank Slootman, chairman and CEO of Snowflake.

Outlook: Snowflake sees fourth-quarter product revenue in a range of $716 million to $721 million, up 29% to 30% year-over-year. The company expects full-year product revenue of $2.65 billion, up 37% year-over-year.

Shares appear to be moving higher on the back of the company's better-than-expected results. Management will hold a conference call at 5 p.m. ET.

Don't Miss: Snowflake Q3 Preview: Cloud Optimization Headwinds In Focus, Earnings Volatility Expected

SNOW Price Action: Snowflake shares were up 7.71% after hours at $188.60 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Snowflake.