Snowflake raises its full-year product revenue forecast to $6.07 billion

Snowflake (SNOW.US) raised its full-year sales forecast after releasing its quarterly results and stated that adoption of its AI-powered coding tool, CoCo, has accelerated, driving the company's after-hours share price up by more than 21%. Snowflake expects product revenue for the fiscal year ending next January to be approximately $6.07 billion, higher than its May forecast and exceeding analysts’ average estimate of $5.86 billion. Product sales account for about 95% of the company’s total revenue. The company reported that during the quarter, more than 2,000 additional customer accounts started using CoCo, bringing the total number of user accounts to 9,100. Snowflake is a software company that helps businesses organize and analyze data in the cloud and is integrating artificial intelligence capabilities into its platform. For the quarter ended in July, Snowflake’s product revenue increased by 37% year-on-year to $1.49 billion, exceeding analysts’ expectation of $1.42 billion. Remaining performance obligations (measuring future order volume) stood at $9 billion, below analysts’ average forecast of $9.37 billion.