The New York Stock Exchange welcomes Snowflake (NYSE:SNOW) on Tuesday. December 21, 2021, to inaugurate the first day of winter. To honor the occasion, Snowflake the Bear, joined by Chris Taylor, Vice President, NYSE Listings and Services, rings The Opening Bell®.
Cloud Data Platform Provider Actions Snowflake fell more than 13% in extended trading on Wednesday after the company reported third-quarter results that beat estimates but offered light product revenue guidance.
Here’s how the company did it:
- Earnings per share: 11 cents, adjusted, versus. 4 cents expected by analysts, according to Refinitiv
- Revenue: $557 million against. $539 million expected by analysts, according to Refinitiv
The company’s revenue was up 67% year over year, but that growth is down from the 83% increase last quarter. The biggest chunk of revenue, product revenue, also grew 67% year-over-year to $523 million. Product revenue is a key metric for Snowflake, as it tallies revenue based on the consumption of the platform.
Snowflake said it expects product revenue to be between $535 million and $540 million in the fourth quarter, below the $553 million expected by analysts’ estimates according to StreetAccount. The company expects to report between $1.919 billion and $1.924 billion for the full year.
Product gross profit margins, operating income margins and adjusted free cash flow are expected to be 75%, 3% and 21% respectively for the full year.
Snowflake said it had 7,292 customers in the quarter, which ended Oct. 31.
The company will hold its quarterly call with investors on Wednesday at 5 p.m. ET.