Snowflake (NYSE: SNOW) reported strong revenue growth, dispelling concerns about AI affecting its business. Revenue surged 32% to $1.14 billion in Q2, exceeding analyst expectations. The company’s Cortex AI platform and new products are driving growth. Snowflake added 533 net new customers and raised its full-year revenue forecast to approximately $4.395 billion.

The company operates as a cloud-based data platform for warehousing and analytics. Snowflake’s architecture allows users to store and process large datasets across multiple cloud providers. Despite concerns that AI could pose a threat due to structured data, AI products have actually helped drive growth, with a net revenue retention rate of 125%.

Snowflake’s stock has surged nearly 60% this year, leading to a frothy valuation. The company generated adjusted free cash flow of $67.8 million in the quarter and expects strong free cash flow in the second half of the year. Snowflake is expanding into Europe and Asia-Pacific, targeting 27% year-over-year growth in full-year product revenue.

Looking ahead, Snowflake is confident in its growth trajectory, with expectations for continued revenue growth driven by AI products. The company is focused on customer expansion and innovation, making it an attractive SaaS business. However, the stock’s valuation may be a concern, trading at a forward P/S multiple of nearly 18 times this year’s estimates.

Read more at Yahoo Finance: Snowflake Shares Soar on Strong AI Growth. Is It Too Late to Buy the Stock?