Snowflake Shares Soar by Most in Four Years After Strong Outlook

  • Software provider also announces deal to buy data startup
  • Company reports quarterly revenue jumped 29% to $900 million

Snowflake’s product expansion strategy is fueled in part by increased pressure from rivals.

Photographer: Gabby Jones/Bloomberg
Lock
This article is for subscribers only.

Snowflake Inc. shares surged by the most in more than four years after the company issued a sales outlook that surpassed investors’ expectations, suggesting new products are attracting strong demand.

Product revenue, which makes up the bulk of Snowflake’s business, will be $906 million to $911 million in the period ending in January, the company said Wednesday in a statementBloomberg Terminal, far surpassing analysts’ estimates of $890.7 million. Adjusted operating margin will be about 4%. Analysts expected 1.7%.