Snowflake stock fell late Wednesday after the enterprise software maker reported first-quarter revenue that topped estimates, but its July quarter guidance just edged by Wall Street expectations.
San Mateo, Calif.-based Snowflake (SNOW) reported April-quarter results after the close.
First-quarter revenue jumped 110% to $228.9 million, slowing from the January quarter’s 117% growth, the provider of cloud-based data analytics software said. That topped analyst estimates of $213 million in revenue.
Snowflake said product revenue rose 110% to $213.8 million vs. estimates of $198.3 million.
For the July quarter, Snowflake forecast product revenue in a range of $235 million to $240 million, just above estimates of $234.5 million.
Snowflake reported a loss of 70 cents per share, compared with a $1.72 per-share loss in the year-earlier period, using generally accepted accounting principles, or GAAP.
Snowflake Stock Trades At High Multiple Of Estimated Revenue
Analyst estimates called for Snowflake to report a non-GAAP, adjusted loss of 15 cents. Non-GAAP results exclude stock compensation. Snowflake did not break out non-GAAP earnings in its release.
Heading into the Snowflake earnings report, the software stock traded at roughly 44 times estimated 2022 sales. Despite a sell-off in software growth stocks in 2021, Snowflake’s trading multiple is still high from a historical view, analysts say.
The Snowflake earnings report sent shares down 5% to 223.50 in after-hours trading on the stock market today.
The Snowflake initial public offering on Sept. 16 raised $3.4 billion and set a record as the largest U.S. software IPO ever. Heading into the Snowflake earnings report, the software maker had a Relative Strength Rating of only 11 out of a best-possible 99.
Snowflake sells software that analyzes business data using cloud computing services from Amazon.com (AMZN) and others.
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