Snowflake down 30% on weak outlook: ‘we’re very bullish on the sector’
- Snowflake Inc expects revenue growth to slow down significantly this year.
- The cloud computing-based data warehousing company to buy Streamlit.
- Eric Hippeau discussed Snowflake's earnings report on CNBC's "Closing Bell".
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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:
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There’s been a bit of over enthusiasm in the sector that’s starting to come down. But the sector is very healthy. The move towards digitization of the economy is still very much ongoing and very strong. So, we’re very bullish about the sector long-term.
Its Q1 forecast for revenue, however, was slightly above the FactSet consensus. Also on Wednesday, Snowflake said it will buy Streamlit.