Here's What Key Metrics Tell Us About Snowflake (SNOW) Q1 Earnings

For the quarter ended April 2025, Snowflake Inc. (SNOW) reported revenue of $1.04 billion, up 25.8% over the same period last year. EPS came in at $0.24, compared to $0.14 in the year-ago quarter.

The reported revenue represents a surprise of +3.74% over the Zacks Consensus Estimate of $1 billion. With the consensus EPS estimate being $0.22, the EPS surprise was +9.09%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Snowflake performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Remaining performance obligations: $6.70 billion compared to the $6.55 billion average estimate based on four analysts.
• Customers with trailing 12-month product revenue greater than $1 million: 606 versus the two-analyst average estimate of 603.
• Revenue- Product revenue: $996.81 million versus $934.18 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +26.2% change.
• Revenue- Professional services and other revenue: $45.26 million versus $44.63 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +15.7% change.
• Non-GAAP Product Gross Profit: $754.12 million compared to the $720.03 million average estimate based on nine analysts.
• Non-GAAP Professional Services and Other Revenue Gross Profit (Loss): -$2 million versus the eight-analyst average estimate of $2.14 million.
• GAAP Product gross profit: $711.54 million versus the two-analyst average estimate of $678.55 million.
• GAAP Professional Services and Other Revenue Gross Profit (Loss): -$18.25 million versus -$14.84 million estimated by two analysts on average.

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This article originally published on Zacks Investment Research (zacks.com).

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