Banking

Snowflake Stock Tumbles As Product Revenue Guidance Edges By Estimates

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.




X



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.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

How This IBD Tool Simplifies The Search For Top Stocks

Find Compelling Growth Stocks With IBD’s Stock Of The Day

Get A Free Trial Of IBD Leaderboard

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists



Most Related Links :
reporterwings Governmental News Finance News

Source link

Back to top button