The stock of Snowflake (SNOW) is up 38% after the cloud computing firm reported financial results that exceeded Wall Street’s expectations.
For its fiscal first quarter ended April 30, Snowflake reported earnings per share (EPS) of $0.39 U.S., which surpassed the $0.32 U.S. forecast among analysts.
Revenue in the period totaled $1.39 billion U.S., which beat the $1.32 billion U.S. expected on Wall Street. The company’s sales were up 33% from a year earlier.
Guidance was also strong, with Snowflake saying that it anticipates a 12.5% fiscal second-quarter operating margin and $1.415 billion U.S. to $1.420 billion U.S. of revenue.
Analysts had a 11.9% margin and $1.37 billion U.S. of revenue penciled in for the company.
Importantly, Snowflake also announced a multi-billion-dollar deal with Amazon (AMZN) along with its latest earnings.
Amazon said its cloud division has landed a $6 billion U.S. spending commitment from Snowflake that includes the use of the company’s custom microchips for artificial intelligence.
Snowflake’s purchase of services and technology from Amazon Web Services (AWS) will occur over five years.
The deal comes as Snowflake expands its use of Amazon’s Graviton general-purpose microchips, as well as cloud-based graphics processing units (GPUs) for A.I.
Lastly, management at Snowflake announced that they are acquiring privately held A.I. startup company Natoma for an undisclosed amount of money.
Prior to today (May 28), SNOW stock had declined 27% since the company’s initial public offering (IPO) in 2020 to trade at $175.26 U.S. per share.
Tech Insider
