The logo of Snowflake Inc., an American computer-based data cloud company that has an in depth partnership with Salesforce, displayed at its booth through the Mobile World Congress 2023 on March 2, 2023 in Barcelona, ​​​​Spain.
Joan Cros | Only photo |
Data cloud analytics company Snowflake raised its full-year product revenue forecast on Wednesday because it attracts more customers to its cloud platform due to advances in artificial intelligence.
However, the corporate’s shares fell greater than 7% in prolonged trading. DA Davidson analyst Gil Luria attributed the decline to the corporate’s failure to link the revenue increase to a rise in margin guidance.
The company now expects product revenue of $3.36 billion for fiscal yr 2025, above the previous forecast of $3.30 billion.
In addition, the corporate authorized a further $2.5 billion through its share repurchase program through March 2027.
Snowflake was the victim of a knowledge breach earlier this yr wherein large amounts of customer data were stolen from firms similar to Ticketmaster parent company Live Nation and telecommunications giant AT&T.
Snowflake is seeing increasing demand for its Data Cloud platform as AI integration has helped firms optimize their data quickly and efficiently.
According to LSEG data, the corporate reported product revenue of $829.3 million for the second quarter ended July 31, beating estimates of $808.4 million.
Snowflake is actively pushing artificial intelligence by developing its own large language model called Snowflake Arctic and partnering with Facebook parent company Meta to leverage its Llama models and increase the appeal of the corporate’s cloud platform.
