Snowflake (NYSE:) reported a strong start to its fiscal year with first-quarter revenue beating expectations, causing the company’s shares to rise 7.5% in response to the news.
The cloud storage company said its revenue for the quarter reached $828.7 million, up 33% from the same period last year and well ahead of the consensus estimate of $786.82 million.
The company’s adjusted earnings per share (EPS) came in at $0.14, down $0.04 from estimates of $0.18. Despite the decline in earnings per share, investors focused on the company’s strong top-line performance, fueled by 34% year-over-year (YoY) growth in product revenue to nearly $790 million.
The company forecast second-quarter product revenue to be around $805 million to $810 million, representing 26% to 27% YoY growth.
Snowflake’s net revenue retention rate was 128%, indicating high customer satisfaction and increased usage.
The company also reported significant growth in its customer base, with 485 customers now generating more than $1 million in product revenue in 12 months, representing 30% year-over-year growth.
Remaining performance obligations rose to $5.0 billion, up 46% year over year, indicating future earnings potential. The company’s CEO Sridhar Ramaswamy attributed the strong quarterly results to the strengths of the company’s core business and growing interest in its artificial intelligence products.
In addition to its financial results, Snowflake announced its plans to acquire technology assets and key personnel from TruEra, an artificial intelligence surveillance platform, further highlighting its commitment to AI innovation.