Snowflake down 30% on weak outlook: ‘we're very bullish on the sector’

Snowflake Inc (NYSE: SNOW) shares tanked 30% in extended trading on Wednesday after the cloud company said revenue growth was likely to slow down this year.

Snowflake Q4 financial results

• Lost $132.2 million that translates to 43 cents a share.
• In the same quarter last year, its loss stood at $199 million or 70 cents a share.
• Sales jumped from $190 million a year-ago to $383.8 in Q4.
• According to FactSet, experts had forecast 3 cents of EPS (adjusted) on $373 million in sales.
• Net revenue-retention rate printed at 178%, as per the earnings press release.
• Remaining performance obligations were up 99% YoY, handily beating experts’ forecast.
• Snowflake had 5,944 customers as of the end of Q4 – 1805 more than last year.
• 184 customers spend over $1.0 million in the trailing twelve months.

Snowflake future outlook disappoints

Snowflake said its full-year product revenue more than doubled to $1.14 billion. For the current year, however, it expects a significant decline in revenue growth to under 70% - below 78% that analysts had predicted. On CNBC’s “Closing Bell”, Lerer Hippeau’s Eric Hippeau said:

Its Q1 forecast for revenue, however, was slightly above the FactSet consensus. Also on Wednesday, Snowflake said it will buy Streamlit.