The New York Stock Exchange welcomes Snowflake (NYSE: SNOW) on Tuesday. December 21, 2021, ushers in the first day of winter.
NYSE
Shares of cloud data platform providers Snowflakes slipped more than 12% in extended trading on Wednesday after the company issued weak instructions in your income statement and indicate will get looking for startup Neeva for an undisclosed amount.
Here’s how the company did it:
- Earnings per share: 15 cents, adjusted, versus the 5 cents analysts expected, according to Refinitiv
- Revenue: $624 million versus $608 million analysts predicted, according to Refinitiv
The company’s revenue grew 48% year-over-year in the first fiscal quarter, but that growth was less than the 85% increase year-over-year. The majority of Snowflake’s revenue comes from product sales, which are up 50% year-over-year. Product revenue takes into account Snowflake’s use of software to store and run queries on data stored in its systems.
Snowflake said it expects product sales to be between $620 million and $625 million in the second fiscal quarter. That would represent an annual growth of between 33% and 34%. The forecast was much lower than the StreetAccount estimate of $649 million.
For fiscal year 2024, Snowflake calls for product sales of $2.6 billion. StreetAccount consensus is $2.7 billion.
Snowflake also announced plans to acquire Neeva, the privacy-focused search company co-founded by former Google executive Sridhar Ramaswamy. Benoit Dageville, Snowflake’s co-founder and president of product, wrote in a blog post that the company intends to “infuse and leverage” Neeva’s AI-powered search products across cloud services. his clouds. Terms of the agreement were not disclosed.
“Neeva allows us to harness some of the most advanced search technologies available to take search and conversation in Snowflake to the next level,” Dageville wrote.
The acquisition took place a few days after Neeva, that is established in 2019said it will turn off its consumer search engine to focus on developing use cases for AI and large language models.
The company will hold a quarterly call with investors on Wednesday at 5 p.m. ET.
— Ashley Capoot of CNBC contributed reporting to this article.
