(Bloomberg) — Snowflake Inc., a software program firm that debuted with 2020’s largest U.S. public providing, mentioned product gross sales will develop extra slowly within the present quarter than within the most-recent interval. The shares fell about 4% in prolonged buying and selling.
Product gross sales, which make up greater than 90% of Snowflake’s income, shall be $235 million to $240 million within the interval ending in July, the San Mateo, California-based firm mentioned Wednesday in an announcement. That may be a progress price of as a lot as 92% over the interval a yr earlier, the corporate mentioned, in contrast with a tempo of 110% within the fiscal first quarter, which ended April 30. Analysts, on common, estimated $233 million, in keeping with information compiled by Bloomberg.
Complete income greater than doubled to $228.9 million within the fiscal first quarter, in contrast with analysts’ common estimate of $213.4 million. The corporate reported its web loss was $203 million, or 70 cents a share, from $93.6 million, or $1.72, a yr earlier.
“Given there have been excessive expectations into the quarter, the investor base may not be happy sufficient with these outcomes to drive shares increased,” Raimo Lenschow, an analyst at Barclays, wrote in a analysis be aware.
Snowflake’s software program pulls info from a number of techniques so purchasers can analyze it collectively in a single place. The corporate competes towards the cloud-computing divisions of Amazon.com Inc., Microsoft Corp. and Alphabet Inc., in addition to open-source vendor Cloudera Inc. and database stalwart Oracle Corp. Snowflake has secured main offers with banks, together with Capital One Monetary Corp. and Goldman Sachs Group Inc.
After the profitable preliminary public providing in September, shareholders have grown involved that the corporate is overvalued. The inventory had declined 16% this yr by Wednesday’s shut.
(Updates with feedback from analyst within the fourth paragraph.)
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