Snowflake Inc (NYSE:SNOW) stock plunges 12.04% (As on March 2, 11:20:40 AM UTC-4, Source: Google Finance) after the company forecast lower revenue growth than analysts had anticipated. Product revenue rose to $555 million from $360 million and ahead of the FactSet consensus, which was for $542 million. The company had a 158% net revenue retention rate in the quarter. Snowflake plans to hire more than 1,000 people this fiscal year, after adding a net of 1,900 staffers in the one that just wrapped up. Remaining performance obligations were $3.7 billion, representing 38% year-over-year growth. Net revenue retention rate was 158% as of January 31, 2023. The company now has 7,828 total customers and 330 customers with trailing 12-month product revenue greater than $1 million. The company is operating in a vast and growing market, prioritizing capabilities that support the core mission of the enterprise, and staying on track for the $10 billion product revenue goal in fiscal 2029.
SNOW in the fourth quarter of FY 23 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 4 cents, according to FactSet consensus. The company had reported the adjusted revenue growth of 53 percent to $589 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $576 million.
Additionally, the company has authorized a stock repurchase program of up to $2.0 billion of the outstanding Class A common stock.
Snowflake’s management expects $568 million to $573 million in product revenue in the first quarter, while the FactSet consensus called for $582 million. For the full year, Snowflake executives expect $2.705 billion in product revenue, representing 40% growth from a year before.
The FactSet consensus for the year was $2.826 billion, after Snowflake executives gave an initial full-year product-revenue forecast for 47% growth on its prior earnings call in late November.
Meanwhile, the company has announced the launch of the Telecom Data Cloud, which unites Snowflake’s data platform, Snowflake- and partner-delivered solutions, and industry-specific datasets. The Telecom Data Cloud helps telecommunications service providers break down data silos within companies and across the ecosystem, allowing organizations to easily and securely access data in near real-time, enrich it with machine learning (ML) models, and then share and analyze it to drive better decisions.