- December 3, 2020
- Posted by: Stratford Team
- Category: Tech
Shares of Snowflake fell as much as 8% in extended trading on Wednesday after the data-warehousing software maker issued its first quarterly financial results as a public company.
Here’s how Snowflake performed:
- Earnings: Loss of $1.01 per share.
- Revenue: $159.6 million.
Snowflake’s revenue grew 119% year over year in its fiscal third quarter, which ended on Oct. 31, according to a statement. In the previous quarter it delivered 121% growth. Losses narrowed from $1.92 per share in the year-ago quarter, while gross margin fell to 58.2% from 59.6%.
The company’s software provides a cloud-based alternative to data warehouses that unify a variety of data and execute queries with on-premises hardware and software. The coronavirus pandemic has driven greater interest in Snowflake, CEO Frank Slootman has said.
The company said for the fiscal fourth quarter it expects $162 million to $167 million in product revenue, which represented 93% of total revenue in the fiscal third quarter. Snowflake said at that range, product revenue would be up 97% to 103% year over year.
Snowflake said it now has 65 customers contributing over $1 million in product revenue over the trailing 12 months. The company reported $927.9 million in remaining performance obligation for contracted revenue that hasn’t been recognized, up 240% on an annualized basis.
In September Snowflake completed its initial public offering and joined the New York Stock Exchange with Berkshire Hathaway and Salesforce investing. The stock closed at $253.93 per share on its first day of trading and has since increased about 15% since then, excluding Wednesday’s stock move, compared with a 8% increase for the S&P 500 over the same stretch.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. Eastern time.
This is breaking news. Please check back for updates.