Frank Slootman, CEO of Snowflake Inc. on September 16, 2020.
Snowflake stock fell as much as 8% in expanded trading on Wednesday after the data analytics software company barely met analyst expectations for full fiscal year product sales.
This is how the company did it:
- Merits: Loss of 70 cents per share
- Revenue: According to Refinitiv, $ 228.9 million versus $ 212.9 million as analysts expected.
Sales were up 110% year over year for the quarter ended April 30, according to a statement. In the previous quarter, sales rose by 117%. The company’s net loss increased from $ 93.6 million to $ 203.2 million.
In terms of projections, Snowflake expects product sales of $ 235 million to $ 240 million in the second quarter of fiscal year, which is the vast majority of total sales. In the middle of the range, that would mean 171% growth. The forecast was above the FactSet consensus estimate of $ 235.4 million.
For the full 2022 fiscal year, Snowflake called for product sales of $ 1.020 billion to $ 1.035 billion, which is mid-range growth of 86% and above the FactSet consensus of $ 1.02 billion. In March, Snowflake forecast full year product sales of $ 1,000 to $ 1,020 billion.
Excluding the after-business move, Snowflake stocks are down about 17% year-to-date, while the S&P 500 index is up nearly 12% over the same period.
Earlier this month, Goldman Sachs analysts upgraded their rating on Snowflake stock to buy it for the equivalent of hold.
“With the stock down ~ 50% from its highs since December 2020, compared to a 1% decline for our broader software coverage and + 4% for the Nasdaq over the same period, we believe investor expectations have gotten more balanced and see outperformance as one way in that direction, as we believe that the sustainability of growth is not fully reflected in the company’s current valuation, “the analysts write. They said investors could get back into growth opportunities and that Snowflake could introduce long-term growth and margin projections at its summit in June that could lift the stock.
Executives will discuss the results with analysts in a conference call starting at 5:00 p.m. Eastern time.
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