Why Snowflake Stock Is Falling After Hours

Snowflake Inc SNOW shares are trading lower in Wednesday's after-hours session after the company reported third-quarter results.

What Happened: Snowflake said third-quarter revenue jumped 67% year-over-year to $557 million. The company's top-line results beat average analyst estimates of $539.1 million, according to Benzinga Pro. Product revenue totaled $522.8 million.

Snowflake reported third-quarter earnings of 11 cents per share, which beat average estimates of 4 cents per share.

Total customers grew to 7,292 during the quarter. 287 customers have trailing 12-month product revenue greater than $1 million.

"Our non-GAAP product gross margin came in at 75%, and we continue to drive strong growth at scale, coupled with strength in unit economics, operating profit, and free cash flow," said Frank Slootman, chairman and CEO of Snowflake.

Snowflake expects fourth-quarter product revenue to be between $535 million and $540 million. The company expects full-year product revenue to be between $1.919 billion and $1.924 billion.

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SNOW Price Action: Snowflake shares are down 11.8% in after hours at $126.05 at time of publication, according to Benzinga Pro.

Photo: courtesy of Snowflake.