Snowflake’s shares fell after the software maker reported a smaller loss in the January quarter compared to the previous year, as revenue exceeded expectations. The Snowflake product revenue projections for the April quarter were influenced by analysts’ estimates.
X
Based in San Mateo, California Snowflake (SNOW) on Wednesday night reported a loss of 70 cents per share, compared to a loss of $ 1.67 in the prior year period using generally accepted accounting principles, or GAAP.
Revenue jumped 117% to US $ 190.5 million, decelerating in relation to the 119% growth of the previous quarter. Snowflake said the product’s revenue increased 116%, to $ 178.3 million, against estimates of $ 166.8 million.
Analyst estimates have asked Snowflake to report an adjusted non-GAAP loss of 17 cents on sales of $ 178.5 million in the period ended January 31. Snowflake did not disclose non-GAAP earnings at its launch.
Snowflake stock: Product revenue guidance limited by estimates
For the current quarter ending in April, Snowflake has forecast product revenue in the range of $ 195 million to $ 200 million. At the midpoint of his guidance, his outlook was about $ 195.7 million.
Snowflake’s earnings report caused shares to drop 4.3% to 236.30 in after-hours trading on the stock market today. In the regular session on Wednesday, Snowflake’s shares fell 8.7%.
Snowflake sells software that analyzes business data using cloud computing services from Amazon.com (AMZN) and others.
Snowflake’s initial public offering on September 16 raised $ 3.4 billion and set a record as the largest US software IPO of all time. The relative strength line of Snowflake’s shares has weakened since the end of the IPO blocking period in early January.
Going to Snowflake’s earnings report, the software maker had a Relative Strength Rating of just 14 out of the 99 best possible.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MIGHT LIKE
How this IBD tool simplifies the search for the best actions
Get full access to IBD stock and ranking lists
Find attractive growth stocks with IBD’s day stock
See Breakout Stocks and technical analysis
These shares gained a place in the IBD ranking