Q1 2022 Snowflake (SNOW) profit
Frank Slootman, CEO of Snowflake Inc., September 16, 2020.
Snowflake shares fell 8% in extended trading on Wednesday after the data analytics software company barely met analysts’ expectations for product revenue, the main source of total revenue for the company , for the full exercise.
Here’s how the company did it:
- Earnings: Loss of 70 cents per share
- Returned: $ 228.9 million, compared to $ 212.9 million as expected by analysts, according to Refinitiv.
Revenue increased 110% year over year in the first quarter of the fiscal year, which ended April 30, according to a statement. In the previous quarter, sales increased by 117%. The company’s net loss fell from $ 93.6 million to $ 203.2 million.
As for the forecast, Snowflake said in the fiscal second quarter that it expects to generate $ 235-240 million in produced revenue, which generated 93% of Snowflake’s total revenue in the fiscal first quarter. . In the middle of the range, that would represent a growth of 171%. The projection is higher than the FactSet consensus estimate of $ 235.4 million.
For the full year 2022, Snowflake claimed $ 1.020 billion to $ 1.035 billion in product revenue, which, in the middle of the range, involves 86% growth and exceeds the FactSet consensus of 1. , 02 billion dollars. In March, Snowflake’s annual forecast was between $ 1,000 billion and $ 1,020 billion in revenue produced.
Excluding the after-hours movement, Snowflake shares are down about 17% year-to-date, while the S&P 500 Index is up nearly 12% over the same time frame.
Earlier this month, Goldman Sachs analysts upgraded their rating on Snowflake stock to buy the equivalent of conservation.
“With the stock falling roughly 50% from its December 2020 highs versus a 1% drop for our broader software coverage and + 4% for the Nasdaq over the same period, we believe that investor expectations have become more balanced and see a path to outperformance, as we believe that the sustainability of growth is not fully reflected in the current valuation of the company, ”analysts wrote. They said investors could return to growth opportunities and Snowflake could introduce long-term growth and margin guidance at its summit conference in June, which could push the stock up.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. EST.
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