Why Snowflake Shares Are Falling

Snowflake Inc SNOW shares are trading lower by 18.8% at $215.00 after the company reported fourth-quarter earnings results and issued first-quarter and FY23 product sales guidance.

Snowflake reported quarterly losses of 43 cents per share. Snowflake also reported quarterly sales of $383.77 million which beat the analyst consensus estimate of $372.59 million by 3%. This sales figure represents a 101% increase over sales of $190.47 million the same period last year.

Snowflake sees first-quarter product sales as low as $383 million and as high as $388 million. Snowflake also sees FY23 product sales as low as $1.88 billion and as high as $1.90 billion.

"Snowflake finished fiscal 2022 with record-breaking consumption and bookings results, including triple-digit product revenue growth," said Frank Slootman, Chairman and CEO, Snowflake. 

"Remaining performance obligations were $2.6 billion, representing year-on-year growth of 99%. Our net revenue retention rate reached 178% driven by continued growth from our largest customers," Slootman stated.

Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers including nearly 30% of the Fortune 500 as its customers.

Snowflake has a 52-week high of $405.00 and a 52-week low of $184.71.