Snowflake Stock Melts On Q4 Earnings, CEO Transition: The Details

Snowflake Inc SNOW reported fourth-quarter financial results Wednesday after the close. Here’s a rundown of the report.

Q4 Earnings: Snowflake’s fourth-quarter revenue increased 32% year-over-year to $774.7 million, which beat the consensus estimate of $759.1 million, according to Benzinga Pro. The data cloud company reported quarterly earnings of 35 cents per share, which beat analyst estimates of 18 cents per share.

Product revenue came in at $738.1 million, up 33% year-over-year. Remaining performance obligations totaled $5.2 billion, up 41% year-over-year. Snowflake said it ended the quarter with 461 customers with trailing 12-month product revenue of more than $1 million.

Snowflake also announced that CEO Frank Slootman has decided to retire from his role as CEO, but will continue to serve as chairman of the board. Sridhar Ramaswamy has been appointed as CEO and a member of the board, effective immediately.

“Snowflake finished fiscal 2024 with a 38% year-over-year product revenue growth, totaling $2.67 billion. Non-GAAP adjusted free cash flow was $810 million, representing 56% year-over-year growth,” Slootman said.

“We are successfully campaigning the largest enterprises globally, as more companies and institutions make Snowflake’s Data Cloud the platform of their AI and data strategy.”

Outlook: Snowflake sees first-quarter product revenue in a range of $745 million to $750 million, up 26% to 27% on a year-over-year basis. The company expects full-year product revenue of $3.25 billion, up 22% year-over-year.

Management will hold a conference call to discuss Snowflake’s quarterly results at 5 p.m. ET.

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SNOW Price Action: Snowflake shares were down 21.9% after hours at $178.88 at the time of publication, according to Benzinga Pro.

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