Snowflake Inc (NYSE:SNOW) stock fell 6.60% (As on May 26, 11:23:17 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 23. Product revenue grew 84% year-over-year to $394.4 million, and remaining performance obligations grew 82% year-over-year to $2.6 billion. Snowflake reported having no adjusted operating margin, while analysts surveyed by StreetAccount had predicted a -1.2% margin. Snowflake’s net loss came to $165.8 million, compared with $203.2 million in the year-ago quarter. In the quarter Snowflake took steps to become more relevant in specific industries. It announced a Retail Data Cloud that draws on an expanded partnership with Amazon, as well as a Healthcare and Life Sciences Data Cloud. One of Snowflake’s rivals, privately held Databricks, has begun focusing on industries as well. Snowflake shifted to a vertical rather than geographical approach in part of its sales organization. Snowflake had 6,322 customers as of quarter end, up from 5,944 at the end of January with trailing 12-month product revenue greater than $1 million. The company has closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency.

SNOW in the first quarter of FY 23 has reported the adjusted loss per share of 53 cents, significantly lower than the analysts’ estimates for the adjusted earnings per share of 1 cents. The company had reported the adjusted revenue growth of 85 percent to $422.4 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $412.76 million. Net revenue retention rate was 174% as of April 30, 2022. Snowflake’s software was quickly expanding, with 120% revenue growth, when it debuted on the New York Stock Exchange in September 2020, and the growth hasn’t slowed down much.

With respect to guidance, management called for 71% to 73% fiscal second-quarter product revenue growth and an adjusted operating margin of -2%. Analysts polled by StreetAccount had expected 72% growth and an adjusted margin of 0.3%. The company projects Q2 product revenue in the range of $435-$440 million.

For the full fiscal year, Snowflake continues to see 65% to 67% product revenue growth and a 1% adjusted operating margin. The StreetAccount consensus was about 66% product revenue growth and an adjusted operating margin of 1%. For the full 2023-year, the company expects product revenue in the range of $1.885 – $1.9 billion.