Shares of cloud-based data-software firm Snowflake are falling in late trading.
stock is sharply lower in late trading Wednesday after the cloud-based data-software company posted disappointing fiscal 2023 guidance that overshadowed strong results for the fiscal fourth quarter ended Jan. 31.
One of the most-expensive cloud-software stocks by almost any measure—and one of the sector’s fastest growers—in the current environment, highflying Snowflake stock was vulnerable to even a modest disappointment. In late trading, Snowflake shares are down 20%, to about $210. Snowflake (ticker: SNOW) went public in September 2020 at $120 a share, but doubled on its first trade.
For the quarter, Snowflake posted revenue of $383.8 million, up 101%, and ahead of the Street consensus forecast of $372.6 million. Product revenue in the quarter was $359.6 million, up 102%, and ahead of the company’s guidance range for $345 million to $350 million. (Snowflake does not provide overall revenue guidance.) Non-GAAP product gross margin was 75% in the quarter. Adjusted free cash flow was $102.1 million, or 27% of revenue.
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The company said its net revenue retention rate, a measure of repeat business, was 178%, which was up from 173% in the October quarter. Remaining performance obligations were $2.6 billion, up 99% year-over-year, and accelerating from 94% growth one quarter earlier….