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Snowflake’s Fiscal Q2 Performance
Snowflake Inc. (NYSE: SNOW) reported its fiscal second-quarter results on August 29, 2023, revealing a 32% year-over-year increase in product revenue, reaching $1.09 billion. The company also noted a net revenue retention (NRR) rate of 125% and an improvement in large-customer metrics, with 654 customers spending over $1 million annually. Snowflake raised its full-year product revenue guidance to approximately $4.4 billion, indicating a growth rate of 27%.
Despite these improvements, Snowflake reported a GAAP net loss of $298 million for Q2, down from $430 million in Q1, and is priced at a market capitalization of about $77 billion, equating to roughly 19 times sales. The company’s free cash flow decreased to $58 million from $183 million in Q1. Investors are cautious due to significant GAAP losses and high valuation metrics amid an atmosphere of economic uncertainty.
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