Snowflake’s profit on Wednesday showed less than the expected loss for the quarter for January, while revenue exceeded forecasts. But the company’s revenue forecast for fiscal 2023 simply rose from expectations, leading to a fall in SNOW shares.
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snowflake (SNOW) released the profit for the fourth quarter after the market closed. In long-term stock market trading today, the software maker’s shares fell 27% to nearly 193.55.
While SNOW shares are offering stellar revenue growth, they are trading at a high rate, despite the recent adjustment in software stocks.
Snowflake said fourth-quarter revenue jumped 101 percent to $ 384 million a year earlier, slowing from a 110 percent increase in the October quarter. Analysts estimated Snowflake’s revenue at $ 373 million.
Snowflake reduces its losses
Shares of Snowflake reported a loss of 43 cents per share, using generally accepted accounting principles or GAAP, compared to a loss of 70 cents per share a year earlier. Analysts expected the company to report a loss of 50 cents per share.
Snowflake shares do not reflect adjusted earnings in their earnings publications. Analysts estimated a profit of 3 cents on an adjusted basis.
Snowflake also announced the acquisition of Streamlit. The conditions were not disclosed.
Shares of Snowflake withdrew 22% in 2022, heading for the earnings report.
SNOW Stocks: Great customer growth continues
In addition, Snowflake said it now has 184 customers with “retained 12-month revenue from products in excess of $ 1 million,” compared to 148 such customers as of Oct. 31.
For the full fiscal year 2023, which ends in January, Snowflake forecasts product revenues of $ 1.89 billion in the middle of its forecast, exceeding analysts’ estimates of $ 1.87 billion.
In September 2020, Snowflake made the largest initial public offering ever made by a software company. Snowflake’s IPO raised $ 3.4 billion.
The software vendor has a relative strength rating of 38 of the top 99, according to IBD Stock Checkup.
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Follow Reinhard Krause on Twitter @reinhardtk_tech for 5G wireless updates, artificial intelligence, cybersecurity and cloud computing.
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