The Yitong Finance app noted that Snowflake (SNOW.US) announced better-than-expected sales prospects, indicating that the newly launched products have been well received by customers. The financial report shows that Snowflake's revenue in the third quarter of the 2025 fiscal year was $0.942 billion, a year-on-year increase of 28.3%, exceeding the market's expected $0.898 billion; under non-GAAP, the earnings per share were $0.20, higher than the market's expected $0.15.

The company's product revenue in the third quarter increased by 29% to $0.9003 billion, while the average expectation was $0.8566 billion.

Snowflake currently has 542 customers, who have spent over $1 million in the past 12 months, compared to 510 in the previous quarter. As of July 31, remaining performance obligations (another key growth metric) were $5.7 billion, exceeding the analyst's average estimate of about $5.2 billion.

Snowflake expects product revenue for the quarter ending in January to be between $0.906 billion and $0.911 billion, far above the expected $0.8907 billion. The company forecasts full-year product revenue to reach $3.43 billion, compared to the expected $3.36 billion.

Snowflake CEO Sridhar Ramaswamy said: "Snowflake had a strong performance in the third quarter, with product revenue reaching $0.9 billion, a 29% year-on-year growth, and remaining performance obligations of $5.7 billion, accelerating by 55% year-on-year."

Can it break out of the slump?

The company's stock price rose by about 16% in after-hours trading. Piper Sandler analyst Brent Bracelin wrote before the financial report was released that as of Wednesday's close, the company's stock price had fallen 35% this year, with investor sentiment being "low." He added that this was due to concerns about slowing consumption on the platform, recent leadership changes, competition, and broader economic pressures.

Snowflake's product expansion global strategy is to some extent under pressure from competitors, including Databricks and Microsoft and other cloud infrastructure providers. Snowflake often boasts that its ease of use is its competitive advantage. When asked about Databricks, the company stated: "Our competitors are a bunch of patched together things, customers have to spend a lot of money hiring engineers to make everything work smoothly."

Snowflake's software can extract, organize, and analyze data from various sources. Under the leadership of CEO Sridhar Ramaswamy, the company has launched products that use generative artificial intelligence, allowing customers to analyze more types of data.

As part of this effort, Snowflake has announced the acquisition of Datavolo, a startup that makes it easier to access unstructured data, unstructured data is disorganized information from other sources, often used for generative artificial intelligence.

Ramaswamy stated that this trade will make it easier for customers to analyze more information in Snowflake and build AI-based applications based on this data.