Snowflake shares drop on light product revenue guidance
The New York Stock Exchange welcomes Snowflake (NYSE:SNOW), on Tues. Dec 21st, 2021, to usher in the first day of winter. To honor the occasion, Snowflake the bear, joined by Chris Taylor, Vice President, NYSE Listings and Services, rings The Opening Bell®.
NYSE
Shares of the cloud data platform provider Snowflake fell more than 5% in extended trading on Wednesday after the company released third-quarter results that beat estimates but offered light product revenue guidance.
Here’s how the company did:
- Earnings per share: 11 cents, adjusted, vs. 4 cents expected by analysts, according to Refinitiv
- Revenue: $557 million vs. $539 million expected by analysts, according to Refinitiv
The company’s revenue was up 67% year over year, but that growth was lower than the 83% increase last quarter. The largest part of revenue, product revenue, also grew 67% year over year to $523 million. Product revenue is a key metric for Snowflake since it recognizes revenue based on platform consumption.
Snowflake said it anticipates product revenue will be between $535 million and $540 million in its fourth quarter, short of the $553 million expected by analysts estimates according to StreetAccount. The company expects to report between $1.919 billion and $1.924 billion for the full year.
Product gross profit margins, operating income margins and adjusted free cash flow are expected to be 75%, 3% and 21% respectively for the full year.
Snowflake said it had 7,292 customers in the quarter, which ended Oct. 31.
The company will hold its quarterly call with investors Wednesday at 5 p.m. ET.