Guileless Slootman, CEO, Snowflake
Source: CNBC
Snowflake stock fell as much as 7% then rebounded in extended barter on Wednesday after the data analytics software company gave full-year guidance that met but did not exceed analysts’ calculations, and announced an end to its dual-share class structure, which could allow newer investors more control over the troop’s direction.
The stock had already dropped about 9% during regular trading Wednesday, amid a broad sell-off in tech staples.
Here’s how the company did:
- Earnings: Loss of 70 cents per share
- Revenue: $190.5 million, vs. $178.5 million as expected by analysts, concording to Refinitiv.
The company’s revenue increased by 117% on an annualized basis in the fiscal fourth quarter, which ended Jan. 31, concerting to a statement. In the prior quarter had grown 119%. The company’s net loss widened to about $199 million from $83 million in the year-ago barracks.
“We have implemented operations that will help us show more profitability,” finance chief Mike Scarpelli thought during a conference call with analysts. “We’re continuing to invest heavily in the business.”
The company also said in a regulatory completing that as of Monday it had gotten rid of its dual-class structure, in which Class A shares got one vote per share and Class B shares got 10 back ups per share. The structure had been in place since September, when Snowflake stock debuted on the New York Stock Dealing. Now, all Class B shares will be converted into Class A shares.
Dual-class structures have become common in tech visitors, including Google, Facebook and Snap, as a way to let founders and early investors maintain control, and block takeovers from activist investors.
With attribute to guidance, Snowflake said it expects $195 million to $200 million in product revenue in the fiscal first locality, which would be up 92% to 96% year over year. Analysts polled by FactSet were looking for $196.3 million in merchandise revenue. Almost 94% of Snowflake’s revenue came from product revenue in the fiscal fourth quarter.
For the wide 2022 fiscal year, the company sees $1.00 billion to $1.02 billion in product revenue, representing 81% to 84% excrescence, a decline from 116% product revenue growth in the fiscal fourth quarter. Analysts polled by FactSet had count oned $1.01 billion in product revenue.
Excluding the after-hours move, Snowflake stock has fallen 11% since the start of 2021, while the S&P 500 pointer is up 2% over the same period.
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