Company logo for Snowflake Inc. is displayed on a banner celebrating the company’s IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS / Brendan McDermid
March 3, 2022
(Reuters) – Data analytics software maker Snowflake forecasts slowing product revenue growth for fiscal year 2023 at a time when industry experts expect cloud spending to pick up, pulling shares of the company rose about 30% in aftermarket trading on Wednesday.
Despite playing an important role in the field, Snowflake is facing stiff competition from major vendors such as Microsoft Corp’s Azure and Amazon.com’s Amazon Web Services.
Snowflake, whose customers include more than 200 Fortune 500 companies, expects product revenue for fiscal 2023 to grow between 65% and 67%, well below the level. 106% by 2022.
This metric is important for a company that recognizes revenue based on the use of its software platform.
Snowflake also said it has acquired Streamlit, a company that helps developers create data-driven applications from Python. The financial terms of the deal were not disclosed.
Shares of the cloud-based data analytics company have fallen more than 22% so far this year, paralleling a trend in the tech sector triggered by concerns around rising interest rates.
For the fourth quarter ended January 31, the company posted total revenue of $383.8 million, beating the average analyst estimate of $372.6 million, according to IBES data from Refinitiv.
(Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath)
https://www.oann.com/snowflake-shares-plunge-30-on-forecast-for-weaker-growth/?utm_source=rss&utm_medium=rss&utm_campaign=snowflake-shares-plunge-30-on-forecast-for-weaker-growth Snowflake stock drops 30% on weaker growth forecast