For the third quarter, Snowflake reported total revenue of $942.1 million, surpassing analyst expectations of $897 million.

The company's data cloud is increasingly being adopted by enterprises looking for AI-powered services to manage large datasets.

Despite the positive earnings report, Snowflake's stock is down 35% year-to-date, contrasting with a 24% increase in the S&P 500 index.

The company's net loss widened to $324.3 million, or 98 cents per share, compared to a loss of $214.3 million in the same quarter last year.

Snowflake's remaining performance obligations totaled $5.7 billion, with growth accelerating to 55% year-over-year, indicating strong future sales.

Snowflake's market capitalization could rise by approximately $10 billion, reaching a total of $43.3 billion if premarket gains are maintained.

Company executives are scheduled to discuss the earnings results on a conference call, providing further insights into their performance and future outlook.

The company anticipates an adjusted operating margin of 5%, up from 3%, and is focusing on cost-saving measures to improve profitability.

Barclays analysts noted that improved sales execution and new product developments are positively impacting Snowflake's performance despite challenging macroeconomic conditions.

The stock is currently trading at a price-to-earnings ratio of 147.32 times its 12-month forward profits, significantly higher than competitors like Datadog and MongoDB.

On November 20, 2024, Snowflake raised its annual product revenue forecast after announcing a partnership with AI firm Anthropic, which resulted in a 19% surge in its shares during extended trading.

The company raised its guidance, forecasting an annual net revenue decline of 1.5% to 3.0% and a comparable sales decrease of 3.0% to 4.5%.