Snowflake CEO Frank Slutman arrives at the Allen & Company Sun Valley conference on July 6, 2021 in Sun Valley, Idaho.
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Shares of Snowflake fell as much as 30% in extended trading on Wednesday after data analytics software showed the slowest revenue growth since at least 2019.
Here’s how the company did:
- Profits: Loss of 43 cents, adjusted
- income: $ 383.8 million, up from $ 372.6 million as analysts expect, according to Refinitiv.
Snowflake’s revenue grew 101% year-over-year in the quarter ended Jan. 31, according to a statement. In the previous quarter, growth reached 110%. The company reported a net loss of $ 132 million, down from nearly $ 199 million in the previous quarter.
Its adjusted gross margin of 70% was below the StreetAccount consensus of 70.9%, although it rose from 62% two years ago, thanks in part to discounts on third-party cloud infrastructure, which it relies on to provide its services to customers.
CEO Frank Slutman is working to expand the ranks of the business. At the end of the quarter, the number of employees was nearly 4,000, an increase of 60% in the last year.
Snowflake said it expects product revenue to grow from 79% to 81% in the first fiscal quarter. Analysts polled by StreetAccount forecast 78% growth in product revenue. In the fiscal fourth quarter, product revenues increased by 102%.
For fiscal 2023, management called for 65% to 67% growth in product revenue. Analysts expected an average growth of 66%, according to FactSet.
Also Wednesday, Snowflake said it was acquiring data on startup Streamlit. The terms of the deal were not disclosed.
Before the movement hours later, shares of Snowflake fell 21% since the beginning of 2022, while the S&P 500 fell about 8% over the same period.
Leaders will discuss the results with analysts during a conference call starting at 17:00 ET.
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