Business

Snowflake stock slides after gains as the company says macro issues are hurting some customer activity

Snowflake Inc. shares fell in after-hours trading on Wednesday after the software company released a guidance for the current quarter that fell short of expectations at the mid-term and acknowledged some customers were consuming less than expected due to macroeconomic factors.

The company posted a net loss of $166 million, or 53 cents a share, in the first quarter, while it posted a net loss of $203 million, or 70 cents a share, in the year-ago quarter. Analysts followed by FactSet had expected the company to lose 52 cents per share on a GAAP basis.

Revenue rose to $422 million from $229 million last year, while analysts had expected $414 million. The company reported product sales of $394 million, while analysts had put it at $389 million.

The company noted that while some customers showed higher-than-expected consumption in the most recent quarter, others, such as B. Consumer-facing cloud companies, however, faced macroeconomic challenges that impacted their consumption.

“While these customers are still growing, we believe their consumption will be impacted as long as they are impacted by macroeconomic headwinds,” Chief Financial Officer Michael Scarpelli said on the conference call.

For the fiscal second quarter, Snowflake SNOW,
+2.42%
expects product sales of $435 million to $440 million, which would represent year-over-year growth of 71% to 73%. Analysts tracked by FactSet put the figure at $440 million.

The company also claims an adjusted operating loss margin of 2% for the fiscal second quarter.

Scarpelli said the company’s guidance reflects trends seen among large customers who have seen macro-driven consumption impacts, though other customers are “partially offsetting some of that.” He added that the first two weeks of May had been “very strong,” but said, “Given the macro headwinds we’re hearing, we’re going to be a bit more cautious for the full year.”

For the full fiscal year, Snowflake expects product sales to be between $1.885 billion and $1.900 billion.

Snowflake shares lost 13% in extended trading on Wednesday. They are down 51% in the last three months as the S&P 500 SPX,
+0.95%
has lost 9%.

https://www.marketwatch.com/story/snowflake-stock-slides-after-earnings-as-forecast-underwhelms-11653510643?rss=1&siteid=rss Snowflake stock slides after gains as the company says macro issues are hurting some customer activity

Brian Lowry

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button