Why Snowflake Shares Are Falling After Hours

Snowflake Inc SNOW shares are falling in Wednesday's after-hours session after the company reported financial results and issued guidance below analyst estimates. 

Snowflake said fiscal first-quarter revenue increased 85% year-over-year to $422.37 million, which beat the estimate of $412.76 million, according to data from Benzinga Pro. The company reported a quarterly loss of 53 cents per share, which may not compare to estimates for earnings of 1 cent per share.

Snowflake said its customer base grew to 6,322 in the quarter, and 206 of those customers have trailing 12-month product revenue greater than $1 million.

"During Q1, product revenue grew 84% year-on-year to $394 million dollars. We closed the quarter with a record $181 million of non-GAAP adjusted free cash flow, pairing high growth with improving unit economics and operational efficiency," said Frank Slootman, chairman and CEO of Snowflake.

Snowflake said it expects fiscal second-quarter revenue to be between $435 million and $440 million versus the estimate of $466.15 million. The company expects full-year 2023 revenue to be between $1.885 billion and $1.9 billion versus the $2.03 billion estimate. 

SNOW Price Action: Snowflake shares are making new 52-week lows on Wednesday.

The stock was down 13.50% in after-hours at $114.99 at press time.

Photo: courtesy of Snowflake.