Snowflake (SNOW) late Wednesday reported a loss for the April quarter that met estimates while revenue topped Wall Street targets, though growth decelerated. Snowflake stock tumbled as its product revenue outlook came in only slightly ahead of views.
The enterprise software maker reported a 53-cents-a-share loss for Snowflake stock using generally accepted accounting principles, or GAAP, compared with a loss of 70 cents per share a year earlier.
Analysts polled by FactSet expected the company to report a loss of 53 cents a share.
Snowflake stock tumbled 13.6% to 114.68 in extended trading on the stock market today. The company released earnings after the market close.
Snowflake Stock: Product Revenue Guidance Meets Views
Analysts also estimated Snowflake would report zero-cents earnings on an adjusted basis. But the company does not break out adjusted earnings in its releases.
Snowflake said first-quarter revenue jumped 85% to $422.4 million from a year earlier. Analysts had estimated Snowflake revenue at $413.7 million. Revenue climbed 101% and 110% in the two previous quarters.
The Snowflake earnings report said product revenue rose 84% to $394.4 million vs. estimates of $389 million.
For the current quarter ending in July, Snowflake said it expects product revenue of $437.5 million at the midpoint of guidance vs. analyst estimates of $436.6 million.
Shares Down 61% For 2022
In addition, Snowflake said it now has 206 customers with “trailing 12-month product revenue greater than $1 million,” up from 184 such customers as of Jan. 31.
Snowflake sells data analytics and management tools that run on cloud computing platforms such as Amazon Web Services, part of Amazon.com (AMZN).
Heading into the Snowflake earnings report, the software stock had retreated 61% in 2022. Snowflake stock holds a Relative Strength Rating of 10 out of a best-possible 99, according to IBD Stock Checkup.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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