Snowflake Inc. reported significant financial results for the three and six months ended July 31, 2024, reflecting continued growth in revenue but also increased net losses compared to the previous fiscal period. For the three months, revenue reached $868.8 million, a 29% increase from $674.0 million in the same period of 2023. For the six months, revenue totaled $1.7 billion, up 31% from $1.3 billion year-over-year. Product revenue also saw substantial growth, with a 30% increase for the three months and a 32% increase for the six months.

Despite the revenue growth, Snowflake reported a net loss of $317.8 million for the three months ended July 31, 2024, compared to a loss of $227.3 million in the prior year. For the six months, the net loss was $635.6 million, up from $453.4 million in the same period of 2023. The increase in net losses was attributed to rising operating expenses, which totaled $936.0 million for the three months and $1.8 billion for the six months, reflecting increases in sales and marketing, research and development, and general and administrative costs.

The company’s total current assets decreased to $3.9 billion as of July 31, 2024, down from $5.0 billion at the end of January 2024. Cash and cash equivalents also fell from $1.8 billion to $1.3 billion during the same period. Total stockholders’ equity decreased to $4.1 billion from $5.2 billion, while accumulated deficit rose to $5.6 billion.

Strategically, Snowflake made several acquisitions, including technology assets from a privately-held company for $10.8 million and the acquisition of Neeva Inc. for $185.4 million, aimed at enhancing its capabilities in AI and data technology. The company also repurchased 5.9 million shares for $916.3 million during the six months, with an additional $2.5 billion authorized for future repurchases.

The company’s net revenue retention rate was reported at 127%, indicating strong customer growth and increased usage. However, Snowflake faces challenges from macroeconomic conditions, including inflation and high interest rates, which may impact customer budgets and consumption strategies. The company continues to invest in platform development and customer support to drive growth, particularly in the AI Data Cloud sector.