SNOW Shares Slip After-Hours On Guidance That Failed To Stoke Investor Sentiment

• Product revenue accounts for a major portion of the company’s total revenue, which analysts estimate to be at $1.31 billion for Q1.
• The company reported Q4 revenue of $1.23 billion, growing 30% year-over-year.
• Adjusted and diluted earnings per share came in at $0.32 in Q4, compared to $0.30 in the corresponding quarter of last year.

Shares of Snowflake Inc. (SNOW) fell 2% after-hours on Wednesday after the company’s sales guidance failed to stir investor sentiment.

The company now expects first-quarter (Q1) product revenue in the range of $1.262 billion to $1.267 billion. Product revenue accounts for a major portion of the company’s total revenue, which analysts estimate to be at $1.31 billion for Q1, according to data from Fiscal AI.

For the fiscal year 2027, the company sees product revenue of $5.66 billion.

Q4 Numbers

Snowflake Inc. is a cloud-based data platform company that provides a fully managed service for storing, managing, analyzing, and sharing large volumes of data across organizations.

The company reported Q4 revenue of $1.23 billion, growing 30% year-over-year, and trailing analyst expectations of $1.25 billion, according to data from Fiscal AI. Snowflake said that the company added 740 net new customers in the quarter.

Adjusted and diluted earnings per share came in at $0.32, compared to $0.30 in the corresponding quarter of last year.

“AI is driving expanded workloads and a broader user base, reinforcing the strength of Snowflake’s overall business,” the company said.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SNOW jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘extremely high’ levels.

A Stocktwits user expressed pessimism regarding the use of AI within software companies moving the revenue needle in any big way contrary to the company’s hopes otherwise.

SNOW stock has gained 3% over the past 12 months. 

Read More: Gene Munster Flags Concerns Over Nvidia’s Long-Term Growth Trajectory Despite Blockbuster Q4 Earnings

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on