BlockBeats, September 3 — Snowflake (SNOW.N) raised its full-year product revenue forecast after reporting quarterly results that beat expectations, with the company citing accelerating adoption of its AI-powered coding assistant CoCo. The stock surged over 21% in after-hours trading.
Snowflake now expects product revenue for the fiscal year ending next January to be approximately $6.07 billion, above its May forecast and exceeding the average analyst estimate of $5.86 billion. Product sales account for about 95% of the company's total revenue.
For the quarter ended July, product revenue rose 37% year-over-year to $1.49 billion, topping the analyst consensus of $1.42 billion. However, remaining performance obligations (RPO), a measure of future orders, stood at $9.0 billion, below the average expectation of $9.37 billion.
The company said it added over 2,000 customer accounts using CoCo during the quarter, bringing the total to 9,100. Snowflake, which helps businesses organize and analyze data in the cloud, is integrating AI features into its platform.