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The time of dreams
Snowflake shares sag late in trading on Wednesday after the cloud-based data warehouse company published mixed results in its first report on earnings as a public company.
Snowflake
(ticker: SNOW) went public in mid-September at $ 120 a share, more than double the first trade at $ 254. The stock gradually traded higher from there, reaching $ 342 intraday. Expectations for the company have been very high, leaving the stock vulnerable to profit taking, which appears to be happening in the wake of today’s earnings report.
For the fiscal third quarter ended Oct. 31, Snowflake reported total revenue of $ 159.6 million, up 119% from last year, with product revenue of 148. $ 5 million, up 115%. (Wall Street expected $ 147.5 million, although it’s unclear whether this reflects the overall revenue outlook or the company’s preferred metric of product revenue.)
Snowflake said “remaining performance bonds” of $ 927.9 million, up 240%, with a “net income retention rate”, a repeat business measure, of 162%, a garish level that few other companies match.
Snowflake reported an operating loss of $ 48.1 million and negative free cash flow. The company posted a net loss of $ 1.01 per share, larger than analysts’ forecast for a loss of 26 cents per share.
Snowflake forecasts product revenue for the January quarter of $ 162 million to $ 167 million, up 97% to 103%, with an operating margin of -30%. For the full year, Snowflake reported sales of $ 538 million to $ 543 million, with a gross margin of 68% and an operating margin of -40%.
“We are pleased with our performance this first quarter as a public company,” Snowflake CEO Frank Slootman said in a statement. “The period was marked by continued strong revenue growth coupled with improved unit economics, cash flow and operational efficiency.”
At the end of the session, Snowflake stock was down 3% to $ 284.
Write to Eric J. Savitz at [email protected]
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