Snowflake shares were volatile in late trading Wednesday after the cloud-based software firm posted better-than-expected revenue for its fiscal fourth quarter but offered a slightly weak sales outlook for the current year.
For the quarter, Snowflake (ticker: SNOW) had total revenue of $190.5 million, up 117% from a year ago and ahead of the Wall Street consensus estimate of $178.5 million. The company had product revenue of $178.3 million, up 116% and above the company’s guidance range of $162 million to $167 million.
The company, which uses the cloud to warehouse and analyze data for corporations, lost $198.9 million on a GAAP basis, or 70 cents a share. That compares to a loss of $83.3 million a year ago.
Remaining performance obligations, or RPO, a measure of work contracted for but not yet delivered, was $1.3 billion, up 213%. Net revenue retention, a metric that tracks renewal rates, was up 168%.
“Remaining performance obligations showed a robust increase year-on-year, reflecting strength in sales across the board,” Snowflake CEO Frank Slootman said in a statement. Coupled with this rapid growth, we saw improving operating efficiency while expanding our footprint globally.”
For the fiscal first quarter ending April 30, the company expects revenue of $195 million to $200 million, up between 92% and 96%, with an operating margin of -23%.
For the January 2022 fiscal year, the company sees revenue of $1 billion to $1.02 billion, up between 81% and 84%, with an operating margin of -19%. The Street had been projecting revenues of $1.1 billion.
Snowflake, which went public last September at $120 a share, touched $429 in December before beginning to slide. The stock fell 8.7%, to $247, in regular trading Wednesday, amid a broad selloff in tech stocks.
After continuing to fall in late trading, Snowflake shares have recovered and are currently up 2.9% in the after hours session.
Write to Eric J. Savitz at [email protected]
