Snowflake turned in second-quarter results, and it was good news for the company and the cloud computing industry in general.
Snowflake is a cloud computing company focused on helping other companies break down data silos, gain better insights from their data, and maximize its overall value. The company just posted its second-quarter results, reporting 83% year-over-year product revenue growth.
In addition to revenue growth, Snowflake posted 171% net revenue retention, owing to significant expansion of services offered to existing customers. The company also has 246 customers accounting for more than $1 million in product revenue.
“Sustained 80%+ product revenue growth in a quarter when the broader demand environment for software softened likely boosts investor confidence that Snowflake’s cloud data platform is viewed as a strategic (and durable) area of investment by enterprise customers,” Morgan Stanley analyst Keith Weiss wrote in a note to clients, according to Seeking Alpha. Morgan Stanley currently has an overweight rating on Snowflake’s stock.
According to Seeking Alpha, much of the cloud industry saw gains following Snowflake’s report. Competitors Datadog and MongoDB saw healthy gains following their own results, while Amazon, Google, Microsoft, and Oracle all saw gains as well. Salesforce was the outlier, falling 5.5%.