A banner for Snowflake is displayed on its IPO day on the New York Inventory Alternate on September 16, 2020. It used to be the most important device IPO in historical past and used to be considered one of 8 CNBC 2020 Disruptor 50 corporations to move public, and extra Disruptor offers are coming quickly.
Brendan McDermid | Reuters
Stocks of Snowflake plunged up to 14% on Thursday morning after the corporate reported income on Wednesday that confirmed the slowest income enlargement since a minimum of 2019.
Fourth-quarter gross sales grew 101% 12 months over 12 months to $383.8 million, which used to be a slowdown from the former quarter, when income enlargement reached 110%, consistent with the Wednesday document. Nonetheless, it beat analysts’ income expectancies of $372.6 million.
Snowflake guided for product income enlargement between 79% to 81% within the fiscal first quarter, somewhat above consensus estimates of 78% product income enlargement. Within the fiscal fourth quarter, product income greater by way of 102%.
Product income makes up a vital proportion of Snowflake’s general income. It displays using its provider for storing and working queries on quite a lot of information.
For the 2023 fiscal 12 months, Snowflake referred to as for 65% to 67% product income enlargement. Wall Boulevard used to be anticipating enlargement of 66%, consistent with analysts surveyed by way of FactSet.
The steerage displays headwinds from upcoming platform enhancements that “cut back buyer question prices within the non permanent however goal to stimulate broader intake longer-term,” Piper Sandler analysts wrote in a observe to shoppers on Thursday.
Credit score Suisse analysts mentioned the platform enhancements might be a near-term headwind, however pointed to different upgrades at the horizon, like stepped forward workload scheduling, that may be certain catalysts for the corporate.
“Even if the upside to FQ4 and ahead steerage used to be not up to traders have come to be expecting
from Snowflake, we proceed to view Snowflake as a real pioneer in cloud-native information analytics
and consider the corporate will play an an increasing number of vital function throughout all the information price
chain — with greater workload applicability due partly to the aforementioned platform
improvements,” the analysts wrote.
— CNBC’s Jordan Novet contributed to this document.
WATCH: Snowflake down giant after This autumn income document