Shares of Snowflake (SNOW) experienced a notable drop of 8% in pre-market trading following the company’s latest earnings report, which revealed a narrower-than-expected loss but disappointing guidance for future earnings. The Montana-based AI data cloud provider reported a year-over-year revenue growth of 29%, totaling $1.15 billion. This figure, however, slightly lagged behind Wall Street’s forecast of $1.18 billion, as per S&P Global Market Intelligence.
The company’s net loss per share stood at $0.87, which was an improvement over analyst predictions of $0.96 per share. Despite the positive news regarding the reduced loss, investors were concerned about the company’s forward-looking statements. For the fourth quarter, Snowflake projected product revenue between $1.19 billion and $1.2 billion, falling short of the average analyst expectation of $1.23 billion. In addition, the full-year revenue guidance of $4.44 billion also missed the Street’s estimates of $4.6 billion.
In a move aimed at bolstering its AI capabilities, Snowflake announced an expansion of its partnership with Anthropic (ANTH.PVT). This multiyear agreement, valued at $200 million, will facilitate the integration of Anthropic’s Claude AI models into the Snowflake platform. The deal also includes the establishment of a joint venture intended to deploy AI agents across major enterprises globally.
Dario Amodei, CEO and co-founder of Anthropic, emphasized the significance of the partnership, stating, “Enterprises have spent years building secure, trusted data environments, and now they want AI that can work within those environments without compromise.” He added that integrating Claude into Snowflake brings valuable AI tools directly into the existing data frameworks of businesses, marking a significant step towards making advanced AI more operationally relevant.
This strategic alignment with Anthropic aligns with Snowflake’s ongoing efforts to enhance its product offerings in an increasingly competitive market and to leverage the power of AI in corporate settings. Despite the temporary setback in stock performance, the partnership could pave the way for further growth as companies continue to seek advanced AI solutions tailored to their data environments.
