Snowflake Shares Are Falling: What's Going On?

Snowflake Inc SNOW shares are trading lower Thursday in the wake of the company's first-quarter results. Several analysts lowered price targets on the stock following the print.

What Happened: Snowflake said first-quarter revenue increased 48% year-over-year to $623.6 million, which beat estimates of $608.36 million, per Benzinga Pro.

Product revenue totaled $590.1 million, up 50% year-over-year. Snowflake reported a net revenue retention rate of 151%. The company ended the quarter with 373 customers that had more than $1 million in trailing 12-month product revenue.

"Data has gravitational pull, and given the vast universe of data Snowflake manages, it is no surprise that interest in data science, AI and machine learning is escalating while its uses are rapidly evolving," said Frank Slootman, chairman and CEO of Snowflake.

Check This Out: Snowflake Surpasses Estimates With Total Q1 Revenue Of More Than $623M, Up 48% YoY

Snowflake sees second-quarter product revenue in the range of $620 million to $625 million. Full-year product revenue is expected to be $2.6. billion. 

Analyst Assessment: 

• Barclays analyst Raimo Lenschow maintained Snowflake with an Overweight and lowered the price target from $171 to $165.
• UBS analyst Karl Keirstead maintained Snowflake with a Neutral and lowered the price target from $170 to $155.
• JMP Securities analyst Joe Goodwin maintained Snowflake with a Market Outperform and lowered the price target from $215 to $200.
• Needham analyst Mike Cikos reiterated Snowflake with a Buy and maintained $180 price target.
• Wells Fargo analyst Michael Turrin maintained Snowflake with an Overweight and lowered the price target from $200 to $185.
• Rosenblatt analyst Blair Abernethy downgraded Snowflake from Buy to Neutral and lowered the price target from $188 to $170.
• Loop Capital analyst Mark Schappel maintained Snowflake with a Buy and lowered the price target from $200 to $195.

SNOW Price Action: Snowflake shares were down 15% at $150.60 at the time of writing, per Benzinga Pro.

Photo: courtesy of Snowflake.