Thursday, February 9, 2023
HomeMarketSnowflake stock sinks after earnings as forecast underwhelms

Snowflake stock sinks after earnings as forecast underwhelms

- Advertisement -

Shares of Snowflake Inc. were falling more than 11% in aftermarket trading Wednesday after the data-software company topped expectations with its revenue for the latest quarter but came up shy with its outlook.

Snowflake
SNOW,
+4.64%
recorded a fiscal third-quarter net loss of $201 million, or 63 cents a share, compared with a loss of $155 million, or 51 cents a share, in the year-before quarter. Analysts tracked by FactSet were anticipating a 63-cent loss per share on a GAAP basis.

The company posted adjusted net income per share of 11 cents, compared with 3 cents a year before, while analysts were modeling 5 cents.

Revenue increased to $557 million from $334 million, whereas analysts were modeling $540 million. Snowflake reported $523 million in product revenue, above the FactSet consensus, which was for $507 million.

Snowflake disclosed that it had 7,292 total customers.

The company reported $65 million in free-cash flow, while analysts had been expecting $2 million.

Looking to the fiscal fourth quarter, Snowflake executives anticipate $535 million to $540 million in product revenue, while the FactSet consensus was for $553 million.

Shares of Snowflake have declined 58% over the past 12 months, as the S&P 500
SPX,
+3.09%
has dropped 11%.

See also: Okta promises profit and stock jumps

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular