Technology

Snowflake has a slowed forecast of product gross sales progress that has not exceeded expectations

snowflake-has-a-slowed-forecast-of-product-gross-sales-progress-that-has-not-exceeded-expectations

Frank Slootman, CEO of Snowflake

Source: CNBC

Snowflake stock fell as much as 7% and later erased the decline, rising 3% in expanded trading on Wednesday after the data analytics software company announced full year projections that met but did not exceed analysts’ estimates . The stock had already fallen 9% during Wednesday’s regular trading as tech stocks were largely sold out.

This is how the company did it:

Merits: Loss of 70 cents per shareRevenue: According to Refinitiv, $ 190.5 million versus $ 178.5 million as analysts expected.

The company’s revenue rose 117% on an annualized basis for the fourth quarter of its fiscal year ended Jan. 31, according to a statement. In the previous quarter it had grown by 119%. The company’s net loss rose to approximately $ 199 million from $ 83 million in the year-ago quarter.

“We have implemented operations that help us show more profitability,” said Chief Financial Officer Mike Scarpelli during a conference call with analysts. “We continue to invest heavily in the business.”

During the quarter, Snowflake announced new developer features and support for unstructured data such as audio and video files.

In terms of projections, Snowflake expects product sales in the first quarter of $ 195 million to $ 200 million, up 92 to 96 percent year over year. Analysts surveyed by FactSet searched for product sales of $ 196.3 million. Almost 94% of Snowflake’s sales came from product sales in the fourth quarter of the fiscal year.

For the full 2022 fiscal year, the company recorded product sales of $ 1.00 to $ 1.02 billion, representing growth of 81 to 84 percent. This corresponds to a 116 percent decline in product sales growth in the fourth quarter of the fiscal year. Analysts polled by FactSet had expected product sales of $ 1.01 billion.

Excluding the after-business move, Snowflake stock has fallen 11% since the beginning of 2021, while the S&P 500 index has risen 2% over the same period.

The company announced in a filing for approval that it had lifted its dual-class structure as of Monday, where Class A shares received one vote per share and Class B shares received 10 votes per share. The structure had been in place since September when Snowflake stock debuted on the New York Stock Exchange.

This is the latest news. Please try again.

SEE: Snowflake CEO on his cloud outlook for 2021

0 Comments
Share

Katherine Clark