The company reported a net loss of 64 cents per share on revenue of $272.2 million. Analysts polled by FactSet were expecting a net loss of 15 cents per share on revenue of $256.1 million.
"While increasing net revenue retention rate to 169%, we also boosted gross margin and operating margin efficiency while our adjusted free cash flow was positive for the third quarter in a row," said CEO Frank Slootman in a statement.
The company said it expects third-quarter product revenue between $280 million and $285 million. For the full year, the company expects product revenue between $1.06 billion and $1.07 billion.
For the third quarter, analysts are expecting product revenue of $272 million, according to ZDNet.
The company expects a 7% operating loss margin for the third quarter and a 9% loss margin for the full year.
Last week, analysts at Cleveland Research issued a cautious report, saying that Snowflake's signings growth slowed from the first quarter, while consumption growth was likely similar, at best, to first-quarter levels
The report also said that the company’s partners were seeing sales cycles elongate on increased competition from the hyperscalers, particularly Google’s (GOOGL) - Get Free Report BigQuery cloud data warehouses.
Snowflake's shares took a hit in June when analysts reacted to the company’s long-term forecast of 10% operating margin and 30% product-sales growth.
Snowflake shares were down 2.8% to $275.84 in afterhours trading Wednesday following its earnings release.