Snowflake stock slides 15% on Q1 earnings report

Snowflake Inc (NYSE: SNOW) reported its financial results for the first quarter late on Wednesday. Shares are down roughly 15% in after-hours trading.

Snowflake Q1 financial highlights

• Lost $165.8 million in Q1 versus the year-ago figure of $203.2 million.
• Per-share loss of 53 cents narrowed from last year’s 70 cents.
• Revenue jumped 85% to $422.4 million, as per the earnings press release.
• Consensus was for 52 cents of per-share loss on $413.7 million in revenue.
• Remaining performance obligations were up 82% and NRR rate stood at 174%.
• Ended the recent financial quarter with 6,322 customers in total.

According to the Bozeman-headquartered company, 206 customers brought in over $1.0 million in product revenue in the trailing twelve months. The stock is now down more than 65% for the year.

Future outlook and CEO’s remarks

In the current fiscal quarter, Snowflake expects its product revenue to fall between $435 million and $440 million.

The top end of its range is in line with the Street expectations. The NYSE-listed company expects up to $1.90 billion in revenue this year. In the earnings press release, CEO Frank Slootman said:

During Q1, product revenue grew 84% year-on-year to $394 million dollars. We closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency. Snowflake’s strategic focus is to enable very single workload type that needs access to data.