(Snowflake) Shares of Snowflake fell more than 15% on Thursday despite reporting a revenue of $422.4 million in the first quarter of 2023. The revenue was 85% higher than the prior year and better than estimates of $412.8 million.
The fall in Snowflake stock reflected a weak outlook after the company said it does not expect a positive adjusted operating margin for its current quarter.
The company said that its product revenue rose 84% from the prior year to $394.4 million in the first quarter. The company had a net revenue retention rate of 174%.
Snowflake reported remaining performance obligations of $2.6 billion, an increase of 82% from the prior year. The company had 206 customers with trailing 12-month product revenue above $1 million.
The company’s net loss was down to $165.8 million in the first quarter, narrower than a loss of $203.2 million in the prior year.
Snowflake now projects a product revenue of between $435 million and $440 million in the second quarter, up 715-73% year-over-year. FY23 product revenue is expected at between $1.885 billion and $1.9 billion, an increase of 65% to 67% from the prior year.
SNOW: NYSE is down -15.06% in premarket.
