Frank Slootman, CEO, Snowflake
Snowflake shares fell about 4% in extended trading on Wednesday after the data analytics software company gave full-year guidance that met but did not exceed analysts’ estimates. The stock had already dropped about 9% during regular trading Wednesday, amid a broad sell-off in tech stocks.
Here’s how the company did:
- Earnings: Loss of 70 cents per share
- Revenue: $190.5 million, vs. $178.5 million as expected by analysts, according to Refinitiv.
The company’s revenue increased by 117% on an annualized basis in the fiscal fourth quarter, which ended Jan. 31, according to a statement. In the prior quarter had grown 119%.
In the quarter Snowflake announced new features for developers and support for unstructured data such as audio and video files.
With respect to guidance, Snowflake said it expects $195 million to $200 million in product revenue in the fiscal first quarter, which would be up 92% to 96% year over year. Analysts polled by FactSet were looking for $196.3 million in product revenue. Almost 94% of Snowflake’s revenue came from product revenue in the fiscal fourth quarter.
For the full 2022 fiscal year, the company sees $1.00 billion to $1.02 billion in product revenue, representing 81% to 84% growth, a decline from 116% product revenue growth in the fiscal fourth quarter. Analysts polled by FactSet had expected $1.01 billion in product revenue.
Snowflake went public in September. Excluding the after-hours move, Snowflake stock has fallen 11% since the start of 2021, while the S&P 500 index is up 2% over the same period.
Executives will discuss the results on a conference call starting at 5 p.m. Eastern time.
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