Snowflake SNOW reported third-quarter fiscal 2023 non-GAAP earnings of 11 cents per share, beating the Zacks Consensus Estimate by 266.67%. The company reported earnings of 3 cents in the year-ago quarter.Revenues of $557 million beat the consensus mark by 3.96% and jumped 66.6% year over year.Snowflake shares were down more than 5% in pre-market trading.Top-Line Details Snowflake’s product revenues accounted for 93.8% of total revenues. The figure was $522.8 million, up 67.3% year over year, comfortably beating the company’s guided range of $500-$505 million.Professional Services and other revenues contributed 6.2% to total revenues. The figure was $34.3 million, up 55.9% year over year. Snowflake Inc. Price, Consensus and EPS Surprise Snowflake Inc. price-consensus-eps-surprise-chart | Snowflake Inc. Quote In the fiscal third quarter, Snowflake witnessed a net revenue retention rate of 165% for existing customers, lower than the 172% reported in the year-ago quarter and 171% reported in the previous quarter.Snowflake reported 34% year-over-year growth in the number of customers, reaching 7,292 in the reported quarter. The company added 28 Forbes Global 2000 customers in the reported quarter.Snowflake signed 14 new customers with $1 million in trailing 12-month product revenues in the reported quarter.Snowflake had 287 customers (with more than $1 million in product revenues), up 94% year over year, in the reported quarter.Product revenues from customers in the health care and life sciences vertical grew more than 100% year over year in the reported quarter.Operating DetailsThe non-GAAP gross margin expanded by 60 basis points (bps) year over year to 71.3%.The product gross margin continued to expand, driven by product improvements, favorable cloud agreement pricing, improving scale and a growing enterprise customer base.Research & development expenses, as a percentage of revenues, increased 110 bps on a year-over-year basis to 17.6%.General & administrative expenses, as a percentage of revenues, were 8.3%, down 250 bps year over year.Sales and marketing expenses, as a percentage of revenues, declined 330 bps on a year-over-year basis to 37.6%.Total operating expenses, as a percentage of revenues, were 63.5% compared with the 68.2% reported in the year-ago quarter.Operating income was $43.4 million in the reported quarter compared with the year-ago quarter’s $8.5 million.Balance Sheet & Cash FlowAs of Oct 31, 2022, Snowflake had cash, cash equivalents and short-term investments of $3.94 billion compared with $3.95 billion as of Jul 31, 2022.The remaining performance obligations at the end of the fiscal third quarter of 2023 were $3 billion, up 66% year over year.The adjusted free cash flow was $65 million in the reported quarter compared with the previous quarter’s $58.6 million.GuidanceFor the fourth quarter of fiscal 2023, Snowflake expects product revenues in the range of $535-$540 million. The projection range indicates year-over-year growth of 49-50%.The operating margin is expected at 1% for the fiscal fourth quarter.For fiscal 2023, Snowflake now expects product revenues in the range of $1.919-$1.924 billion, suggesting year-over-year growth of 68-69%.The non-GAAP product gross margin is expected at 75% and the non-GAAP operating margin is expected at 3%.The non-GAAP adjusted free cash flow margin is expected at 21% in fiscal 2023.Zacks Rank & Stocks to ConsiderSnowflake currently has a Zacks Rank #3 (Hold).The company’s shares have declined 57.9% compared with the Zacks Computer & Technology sector’s loss of 33.7% year to date.Some better-ranked stocks in the Computer & Technology sector are Richardson Electronics RELL, Sanmina SANM and Super Micro Computer SMCI. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Richardson Electronics, Sanmina and Super Micro Computer are up 88.2%, 59.4% and 105.3%, respectively, on a year-to-date basis. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Richardson Electronics, Ltd. (RELL): Free Stock Analysis Report Sanmina Corporation (SANM): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research