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Snowflake Has Best Day Since IPO on Strong Sales Forecast

  • Positive results dispel fears of customer spending pullback
  • Company offers specialized data products for the cloud
Snowflake Soars After Record $3.36 Billion Software Debut
Photographer: Gabby Jones/Bloomberg
Updated on

Snowflake Inc. jumped to its largest single-day increase since going public after its forecast for quarterly sales topped analysts’ estimates, reassuring Wall Street that companies are still investing in their technology systems to boost efficiency.

Product revenue at the maker of software to organize and analyze data in the cloud will be as much as $505 million in the period ending in October, the company said Wednesday in a statement. Analysts, on average, estimated $501.1 million, according to data compiled by Bloomberg. Product sales make up the majority of Snowflake’s total revenue and are watched closely by investors and analysts.