Snowflake stock rises on full-year sales outlook boost

Shares of Snowflake (SNOW) are moving on Thursday morning after the company posted its first quarter report, beating revenue expectations with $828.71 million against an expected $786.26 million. The company also boosted its full-year sales outlook from $3.25 billion to $3.3 billion.

Yahoo Finance Anchors Brad Smith and Seana Smith break down the latest developments for Snowflake, including its AI spending budgets.

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This post was written by Nicholas Jacobino

Video transcript

Snowflake also impressing the street here with its latest earnings report.

The company boosting its full year outlook now sees $3.3 billion in product revenue.

This is the company's first report under its new CEO, you're looking at adjusted eps of 14 cents.

So coming up just a bit shy but the street was looking for there.

It's on your screen, but revenue coming in exceeding expectations.

And certainly when we talk about the story surrounding Snowflake, a lot of that have to do me the story having to do with A I the growth that we are seeing there.

So what exactly this looks like here going forward now, this is a stock, we're not seeing too much movement here at least over the last three months of that longer term chart.

You have been looking at losses of just about 27%.

So analysts certainly have taken issue on some of those initiatives and some of the growth that we had seen from Snowflake here in the past.

But again, when you take a look at the street's reaction to this Evercore saying that the results are gonna do help that the business remains unquote stable footing while new A I products remain a call option for the second half of the year.

You're looking games here just about 4%.

Brad.

Yeah.

Really interesting here.

I mean, they said the magic word or two words or even acronym in A I and so, yeah, you get the check mark on that one.

What's also interesting is how they're talking about the A I budgets right now.

They're saying their A I budgets modest in the scheme of things and creative and how they developed these models and something that the team comes to naturally expect.

But it's interesting because analysts actually did poke at that just a little bit more.

It sounded like on the call yesterday after these results were dropped, trying to get a good sense of how much spending this company is gonna be continuing to do on some of the development of their own services, especially given the kind of customer landscape and the demand profile that we're seeing right now.

That's led a lot of other companies to announce just how much their capital expenditures may look like here going forward.

And so if Q one truly is the low point of some of that spending for companies who are looking at where they can be beneficiaries to their bottom line of generative A I then going out from here, investors are going to be keeping close tabs on just how much money is going into bringing some of these products to life here and ultimately what they're able to charge and market too here for snowflake.