Snowflake plunges as lowered forecast outweighs Q1 results
Snowflake (NYSE:SNOW) shares fell more than 12% in extended-hours trading after the data warehousing management company lowered its outlook for the remainder of the fiscal year.
Looking to the full-year, Snowflake (SNOW) now anticipates product revenue to be about $2.6B, below the previous view of $2.71B. Analysts were anticipating $2.71B in full-year product revenue.
The company also lowered its full-year adjusted operating margin to 5%, down from a previous view of 6%.
For the upcoming quarter, Snowflake (SNOW) expects product revenue to grow between 33% and 34% year-over-year to fall within a range of $620M and $625M, below the $646.3M analysts were expecting.
The Frank Slootman-led company also said it expects adjusted operating margin of around 2%.
Amid the uncertain economic environment, Snowflake (SNOW) generated $623.6M in revenue for the first-quarter, including $5901.M in product revenue. Analysts were expecting $609.5M in quarterly sales.
Analysts were expecting Snowflake (SNOW) to earn 5 cents per share on $608.7M in revenue.
Adjusted free cash flow was $287 million for the quarter, up 58% year-over-year, Snowflake added.
The company will host a conference call at 5 p.m. EST to discuss the results.
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Source: Seeking Alpha
