Snowflake shares were hit hard by lower-than-expected revenue guidance.
Shares of American cloud computing firm Snowflake Inc (NYSE:SNOW) are taking a big hit as the company trades in the pre-market today. Free Its first quarter fiscal 2024 revenue report. Despite its impressive performance, the company shared lower-than-expected revenue guidance for the second quarter.
The company said its revenue for the first quarter was $624 million, compared with the $608 million estimated by analysts polled by Refinitiv. To complement revenue that exceeded expectations, Snowflake reported adjusted earnings per share of 15 cents, compared with the 5 cents expected by analysts.
Snowflake is a Bozeman Montana based company whose product offerings are slowly being well adopted. From the disclosure of its current performance, it has seen a growth of 48% in the year-on-year period. The bulk of the company’s revenue came from product sales, which grew 50% year over year.
“During Q1, Snowflake’s product revenue grew 50%, totaling $590 million. Non-GAAP adjusted free cash flow was $287 million for the quarter, up 58% year-over-year,” said Frank Slootman, Snowflake’s president and CEO. “Data has a gravitational pull, and given the vast universe of data that Snowflake manages, it is no surprise that interest in data science, AI and machine learning is growing, while its uses are rapidly evolving. Are.”
According to Snowflake, it recorded 373 customers who had as much as $1 million in 12-month product revenue. The company also recorded a net revenue retention rate of 151%. The firm said its product has begun to see mass acceptance and that “by April 30, 2023, thousands of customers across multiple industries, including 590 of the 2022 Forbes Global 2000 (G2K), will use Snowflake Data Cloud to power their businesses.” use.”
Snowflake Revenue Guidance Miss
As a business that wants to compete with the likes of Amazon Web Services (AWS) and Google Cloud, expanding its operations is critical. one of the ways to get it Received Neeva, the privacy-focused search company co-founded by former Google executive Sridhar Ramaswamy.
The company plans to leverage the AI capabilities of the Niva search engine across all of its cloud service products. Its global brands, Snowflake and Niva, will be put on a renewed profitability path by offering variety, which the company said is expected to help boost its revenue to $620 million and $625 million in the fiscal second quarter. Does This projection is lower than the $649 million that was profiled by StreetAccount analysts.
The revenue projection for the full 2024 fiscal year came in at $2.6 billion, a figure that falls short of the $2.7 billion that analysts are expecting for the year.
The lower-than-expected revenue guidance caused Snowflake shares to slide as much as 14.19% as investors expressed negative optimism regarding the company’s future.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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