Snowflake stock falls 8% after earnings as forecast underwhelms


https://www.marketwatch.com/story/snowflake-stock-falls-after-earnings-as-forecast-underwhelms-f9236e4c

Shares of Snowflake Inc. fell more than 7% in after-hours trading Wednesday after the data-software company beat expectations with its latest quarterly results but forecast lower revenue for the full year than analysts had been anticipating.

The company generated a fiscal fourth-quarter net loss of $207 million, or 64 cents a share, compared with a loss of $132 million, or 43 cents a share, in the year-earlier quarter. On an adjusted basis, Snowflake SNOW, +0.08% earned 14 cents a share, up from 10 cents a share a year before, whereas the FactSet consensus was for 4 cents a share.

Snowflake posted $589 million in revenue, up from $384 million a year before, while analysts were expecting $576 million. Product revenue rose to $555 million from $360 million and ahead of the FactSet consensus, which was for $542 million.

The company had a 158% net revenue retention rate in the quarter.

For the fiscal first quarter, Snowflake’s management expects $568 million to $573 million in product revenue, whereas the FactSet consensus was for $582 million.

For the full year, Snowflake executives expect $2.705 billion in product revenue, representing 40% growth from a year before. The FactSet consensus was for $2.826 billion. Snowflake gave an initial full-year product revenue forecast calling for 47% growth on its prior earnings call in late November.

The company also disclosed that it has received authorization for a share-repurchase program of up to $2 billion.

Shares of Snowflake have shed more than 40% over the past 12 months, as the S&P 500 index SPX, -0.47% has lost about 8%.


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