Snowflake Inc (NASDAQ:SNOW) shares are jumping on Tuesday, moving in tandem with MongoDB Inc (NASDAQ:MDB) after both data platform companies saw their stocks jump in after-hours trading Monday.
What To Know: Snowflake and MongoDB are both data platform companies serving enterprise customers with cloud-based solutions. Investors appear to be anticipating upbeat earnings from Snowflake, set to be released Wednesday, Dec. 3 after market close, following MongoDB’s strong results.
After the announcement of the third-quarter revenue, which amounted to $628.31 million, MongoDB stocks went up. The revenue was a 19% increase compared to the previous year, which was already above the estimated amount of $591.52 million. Adjusted earnings per share were reported to be $1.32, which was far more than the perceived 80 cents.
In addition, the company has upgraded its fiscal 2026 predictions. The revenue for the whole year is now said to be between $2.43 billion and $2.44 billion, in contrast to the previous range of $2.34 billion to $2.36 billion. The adjusted earnings are estimated to be $4.76 to $4.80 per share, which is an increase from the earlier $3.64 to $3.73.
On the other hand, Snowflake showed a product revenue of $1.09 billion in its latest quarter which indicates a 32% increase compared to the same quarter in the previous year. The net revenue retention was 125%. The firm gained 654 new customers with more than $1 million annual product revenue, and also got 751 customers from the Forbes Global 2000 list. Remaining performance obligations totaled $6.9 billion, up 33% year-over-year.
“Snowflake delivered yet another strong quarter, with product revenue of $1.09 billion, up a strong 32% year-over-year, and remaining performance obligations totaling $6.9 billion,” said Sridhar Ramaswamy, CEO of Snowflake. “Thousands of customers are betting their business on Snowflake and more than 6,100 accounts are using Snowflake’s AI every week.”
For the third-quarter, Snowflake had guided for product revenue of $1.125 billion to $1.130 billion, representing 25% to 26% year-over-year growth.
SNOW Price Action: Snowflake shares were up 3.17% at $260.03 at the time of publication on Tuesday, according to Benzinga Pro.
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