Takeaways by Saasverse AI
- $1.1B Revenue (32% Growth YoY) | EPS $0.35 (vs. $0.27 expected) | $69B Remaining Performance Obligations (33% Growth YoY).
- Product Revenue $1.09B (32% Growth YoY) | 6,100+ companies using Snowflake’s AI features weekly | Net Revenue Retention Rate at 125%.
- Stock surged 12% after-hours | Raised FY2025 revenue guidance to $4.395B (+27% YoY) | Launched Cortex AISQL and acquired Crunchy Data Solutions.
Snowflake, a leading cloud data warehousing company, posted stellar results for Q2 FY2025, exceeding Wall Street expectations and reaffirming its position as a critical enabler in the AI-driven enterprise data ecosystem. The company reported $1.1 billion in total revenue for the quarter, marking a 32% year-over-year growth, outpacing analysts' consensus estimate of $1.09 billion. Adjusted earnings per share came in at $0.35, significantly surpassing the expected $0.27, signaling disciplined cost management alongside robust growth.
The lion’s share of Snowflake's revenue stemmed from its product offerings, which generated $1.09 billion, also up 32% year-over-year. These product revenues were driven by strong customer consumption across compute, storage, and data bandwidth. Notably, Snowflake reported a portfolio of 654 customers generating over $1 million in annual product revenue and 751 clients from the Fortune Global 2000 list. The company’s net revenue retention rate remained a healthy 125%, reflecting strong customer loyalty and expanding usage.
In the broader market context, Snowflake continues to ride the AI wave, as enterprises increasingly require scalable data platforms to support machine learning and artificial intelligence workloads. CEO Sridhar Ramaswamy highlighted that over 6,100 companies are now using Snowflake's AI capabilities on a weekly basis, underscoring the platform’s relevance in modern AI-driven workflows. Snowflake’s newly launched Cortex AISQL model, introduced at its annual summit, allows analysts to query unstructured data formats such as images, audio, and long-text using standard SQL commands, further differentiating its capabilities in the competitive cloud data space.
The company also announced its acquisition of Crunchy Data Solutions, a firm specializing in advanced vector database technologies. This move is aimed at bolstering Snowflake's capabilities in managing and searching unstructured data, a growing area of focus as organizations grapple with diverse data formats in the AI era.
Market reactions to the earnings report were overwhelmingly positive, with Snowflake shares surging over 12% in after-hours trading. The stock, now boasting a market capitalization of approximately $65 billion, has already gained more than 30% year-to-date, reflecting investor confidence in the company’s ability to capitalize on long-term growth opportunities in AI and cloud computing.
“ Snowflake provided optimistic guidance for Q3 FY2025, projecting product revenues of $1.25–$1.30 billion, representing a year-over-year growth of 25–26%. Additionally, the company raised its full-year revenue forecast to $4.395 billion, signaling a 27% growth for FY2025. This upward revision reflects management’s confidence in sustained demand for Snowflake’s cloud data platform amid the ongoing digital and AI transformations across industries.” Saasverse Analyst comments.
Saasverse Insights
Snowflake’s strong financials and innovative product launches position it as a cornerstone player in the AI and cloud computing landscape. Its focus on unstructured data and AI-driven analytics aligns with broader industry trends, but the company’s reliance on consumption-based pricing could pose risks in a softening macroeconomic environment. That said, with a robust pipeline of enterprise clients and strategic acquisitions like Crunchy Data, Snowflake appears well-prepared to maintain its growth trajectory in the coming quarters.