Is Snow On The Right Path?

This issue is already very beefy, but we can’t go without at least mentioning two tech stocks falling after hours. ✌️

First up is Snowflake, which is melting down after issuing a weaker-than-expected forecast. 🫠

The cloud-based data storage company’s adjusted earnings per share of $0.15 beat Wall Street’s view by $0.10. And revenues of $623.6 million also topped the $609 million estimate. More specifically, product revenue of $590.1 million beat the company’s guidance of $568 to $573 million. And its net retention rate was 151%

However, its guidance is where things fell apart. 😬

Executives now expect product revenue of $620 to $625 million in Q2 vs. the $649 million consensus view. They also expect a non-GAAP operating margin of 2%. For the full year, they see product revenue of $2.6 billion vs. their last estimate of $2.7 billion. Non-GAAP operating margin of 5% was down from 6%. And to end positively, they raised adjusted free cash flow margin expectations by 1% to 26%.

Despite management’s attempt to reassure shareholders, the market remains unsure whether the company is headed in the right direction. $SNOW shares are down 11% after the bell. ❄️

Meanwhile, global software company UiPath didn’t fare much better. The maker of robotic process automation software also failed to impress Wall Street with its forecast. 👎

Its Q1 non-GAAP earnings per share of $0.11 beat by $0.02. Revenues of $289.59 million and annual recurring revenue (ARR) of $1.249 billion also topped estimates. However, executives forecast second-quarter revenues of $279 to $284 million, below the $284 million expected. 

With so many companies meeting (or beating) expectations this earnings season, the market is showing little mercy towards those with weak forecasts. As a result, $PATH shares fell 9% after hours. 📉

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Speculation Heightens As Jumia Jumps

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The company reported reducing its losses by over 90% in the fourth quarter as it focused on restoring order and gross merchandise value (GMV) growth. Like other struggling companies, it cut costs significantly and leveraged lower tax provisions to help drive the earnings improvement. 

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