SNOW Inventory Tumbles As Snowflake Provides Weak Product Income Steerage


Snowflake (SNOW) reported third-quarter earnings that met expectations whereas income topped Wall Avenue targets. The enterprise software program maker’s product income steering got here in under expectations, and SNOW inventory tumbled.


For the quarter ending Oct. 31, Snowflake mentioned it misplaced 63 cents per share versus a 51-cent loss a 12 months earlier. Analysts polled by FactSet anticipated Snowflake to report a lack of 63 cents a share.

The corporate reviews outcomes utilizing usually accepted accounting rules, or GAAP. Snowflake doesn’t get away adjusted earnings in its releases.

Third-quarter income climbed 67% to $557 million, the software program maker mentioned. Analysts had predicted income of $539.4 million.

SNOW Inventory: Income Outlook Misses

The Snowflake earnings report additionally mentioned product income rose 67% to $522.8 million vs. estimates of $505.2 million.

For the present quarter ending in January, Snowflake expects product income of $537.5 million on the midpoint of its outlook. Analysts had anticipated $549.2 million.

As a result of Snowflake’s enterprise mannequin is consumption-based relatively than subscription-based, bearish traders have raised issues over a doable U.S. recession curbing demand. Snowflake income is tied to how a lot knowledge its clients crunch and retailer on cloud computing platforms.

SNOW inventory tumbled 13% to close 124 in prolonged buying and selling on the inventory market in the present day.

Snowflake inventory was down 57% for 2022 heading into the earnings report.

Snowflake sells knowledge analytics and administration instruments that run on cloud-computing platforms reminiscent of Amazon Net Providers, a part of (AMZN).

Amid the bear market in software program development shares, the software program inventory has a Relative Power Ranking of 17 out of a best-possible 99, in keeping with IBD Inventory Checkup.

Comply with Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wi-fi, synthetic intelligence, cybersecurity and cloud computing.


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