Snowflake has announced that it has raised its annual product revenue forecast as enterprises increased spending on AI applications and shifted more data workloads to its cloud platform, causing its shares to surge 36% in after-hours trading.
The surge comes as the company reported adjusted earnings of 39 cents per share on $1.39 billion in revenue, representing a 33% increase year over year.
Snowflake announced an agreement with Amazon Web Services involves a five-year procurement of services and technology, as stated in a press release. The company plans to increase its utilization of Amazon’s Graviton Snowflake announced an agreement with Amazon Web Services involving a five-year procurement of services and technology.
“The new deal with Amazon adds another element to the growth path for Snowflake,” said Gil Luria, managing director of D.A. Davidson.
“It allows Snowflake to take an even bigger role in their customers transition to AI and aligns them even more with their biggest partner.”
Both agreements with the AI model companies involve an equity investment, whereas the Snowflake deal does not. Snowflake, which went public in 2020, has a market cap of just over $60 billion and has historically depended on AWS.
Snowflake shares jumped as much as 36% in extended trading after the announcement.
By CEO NA Editoral Staff
