Snowflake shares rise as revenue, adjusted profit beats estimates

Snowflake ( SNOW ) shares rose Thursday morning after the data software company reported better-than-expected third-quarter results after hours Wednesday.

The company reported $942.1 million in revenue, up 28% year-over-year and above the $900.3 million analysts had expected, according to estimates compiled by Visible Alpha. Snowflake also posted a net loss of $327.9 million, larger than the $214.7 million net loss it recorded at the same time last year, but just short of the $329.5 million analysts expected Snowflake to burn.

After adjusting for about $400 million in one-time expenses such as stock-based compensation and restructuring costs, Snowflake reported $73.31 million in adjusted net income, down from $89.73 million last year but better than the $55.31 million analysts had expected.

Snowflake Lifts Product Revenue Guide, Announces Acquisition and Anthropic Partnership

For the full fiscal year, Snowflake lifted its projected “product revenue,” a metric that makes up the bulk of its revenue. Snowflake collects revenue based on the use of its computing, storage and other data products, rather than collecting a set amount for a contract.

The company expects product revenue of about $3.43 billion for the quarter, above the $3.39 billion analysts expected to come in Wednesday’s report.

Separate from its quarterly results, the company also announced an acquisition and a new artificial intelligence (AI)-powered partnership.

The company said it bought data integration platform Datavolo for an undisclosed amount, along with a new partnership with Amazon ( AMZN )-backed Anthropic to use its Claude large-scale language models in Snowflake products.

Snowflake shares were up more than 23% Thursday morning, still about 20% below where they started the year.