Snowflake Inc. Forecasts Higher Product Sales for Current Quarter

According to Yahoo News, Snowflake Inc. has provided a product sales outlook for the current quarter that surpasses expectations, raising hopes that revenue has stabilized after the software company experienced a significant slowdown in growth over the past year. The company announced that product revenue is expected to increase by approximately 30% to as much as $721 million in the period ending in January. Analysts had estimated an average of $702.2 million, according to data compiled by Bloomberg. Product sales account for the majority of Snowflake's total revenue and are closely monitored by investors. Over the last year, Snowflake's revenue growth has decelerated from quarterly gains of more than 80% as many businesses began to scrutinize their software spending. The company is particularly sensitive to changes in economic sentiment because it charges customers based on their usage of Snowflake's data optimization products, rather than requiring multiyear subscriptions common among other software vendors. Snowflake's shares rose about 9% in extended trading after closing at $175.32 in New York. The stock has increased 22% this year, lagging behind the overall software industry as investors were concerned about the slipping sales growth.