snowflake (SNOW) late Wednesday reported a loss for the April quarter, in-line with estimates, while earnings beat Wall Street’s targets even as growth slowed. Snowflake stock tumbled as the product sales outlook came in just slightly above expectations.
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The enterprise software maker reported a loss of 53 cents per share for Snowflake shares under generally accepted accounting principles (GAAP), compared to a loss of 70 cents per share a year earlier.
Analysts polled by FactSet expected the company to report a loss of 53 cents per share.
Snowflake shares fell 13.6% to 114.68 in extended trading on the stock exchange today. The company released earnings after the market closed.
Snowflake Stock: Product Sales Forecast Meets Views
Analysts also estimated that Snowflake would report zero-cent earnings on an adjusted basis. But the company doesn’t report adjusted earnings in its releases.
Snowflake said first-quarter revenue was up 85% year over year to $422.4 million. Analysts had estimated Snowflake’s revenue at $413.7 million. Revenue rose 101% and 110% in the previous two quarters.
Snowflake’s earnings report states that product revenue increased 84% to $394.4 million from estimates of $389 million.
For the current quarter ending in July, Snowflake expects product sales of $437.5 million at mid-point versus analyst estimates of $436.6 million.
Stocks down 61% in 2022
Additionally, Snowflake said it now has 206 customers with “trailing 12 months of product sales in excess of $1 million,” up from 184 such customers as of Jan. 31.
Snowflake sells data analysis and management tools that run on cloud computing platforms such as Amazon Web Services, part of Amazon.com (AMZN).
Heading towards the Snowflake earnings report, Software stock was down 61% in 2022. Snowflake stock has a relative strength rating of 10 out of a best possible 99, according to the IBD Stock Checkup.
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Follow Reinhard Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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