Snowflake Inc (NYSE: SNOW) stock fell over 0.3% on 27th May, 2021 (as of 11:18:50 UTC-4 · USD; Source: Google finance) after the company’s first quarter of FY 21 performance. However, the company has reported the net loss of $203.2 million for the period from $93.6 million. Product revenue for the quarter was $213.8 million, which represents 110% year-over-year growth. For the full 2022 fiscal year Snowflake expects the range $1.020 billion to $1.035 billion in product revenue, which at the middle of the range implies 86% growth and is more than the $1.02 billion FactSet consensus. Snowflake has also raised the forecast for adjusted operating margin to be -17% from -23%.
Remaining performance obligations were $1.4 billion, reflecting 206% year-over-year growth. Net revenue retention rate was 168% as of April 30, 2021. The company now has 4,532 total customers and 104 customers with trailing 12-month product revenue greater than $1 million. The company has also generated $23 million of adjusted free cash flow in the first quarter. The company is expanding the geographical scope in all three major theaters. Both EMEA and APJ have breakout bookings quarters. EMEA rose more than 200% and Asia Pacific grew more than 300% year-over-year. At the end of Q1, the company had 104 customers with over $1 million in product revenue, which is an increase from 77 in the previous quarter. During Q1, the company had key enterprise wins, including Datadog, Equifax and Walgreens Boots Alliance.
SNOW in the first quarter of FY 21 has reported the adjusted loss per share of 70 cents, which is exactly the same amount last quarter. The company had reported the adjusted revenue growth of 110 percent to $228.9 million in the first quarter of FY 21. The product gross margin was 72%, up 600 basis points from last year. Favorable cloud service agreements, growing scales across regions and the enterprise customer success all contribute to steady gross margin improvements. Operating margin was negative 16%, benefiting from revenue outperformance. The company has strong cash position with approximately $5.1 billion in cash, cash equivalents and short-term and long-term investments.
Snowflake for the fiscal second quarter expects to generate $235 million to $240 million in product revenue, which delivered 93% of Snowflake’s total revenue in the fiscal first quarter. The forecast came in above the FactSet consensus estimate of $235.4 million.