Snowflake shares plunge 12% on guidance miss, acquisition of search startup Neeva
The New York Stock Exchange welcomes Snowflake (NYSE:SNOW), on Tues. Dec twenty first, 2021, to usher within the first day of winter.
Shares of cloud knowledge platform supplier Snowflake slid greater than 12% in prolonged buying and selling on Wednesday after the corporate issued weak guidance in its earnings report and stated it will acquire search startup Neeva for an undisclosed quantity.
Here’s how the corporate did:
- Earnings per share: 15 cents, adjusted, vs. 5 cents anticipated by analysts, in accordance with Refinitiv
- Revenue: $624 million vs. $608 million anticipated by analysts, in accordance with Refinitiv
The firm’s income grew 48% 12 months over 12 months within the fiscal first quarter, however that development was decrease than the 85% improve 12 months over 12 months. The bulk of Snowflake gross sales come from product income, which expanded 50% 12 months over 12 months. Product income accounts to be used of Snowflake’s software program for storing and operating queries on knowledge saved in its system.
Snowflake stated it anticipates product income will likely be between $620 million and $625 million within the fiscal second quarter. That would signify year-over-year development between 33% and 34%.The projection got here in effectively under the StreetAccount estimate of $649 million.
For the 2024 fiscal 12 months, Snowflake referred to as for product income of $2.6 billion. The StreetAccount consensus was $2.7 billion.
Snowflake additionally introduced it plans to amass Neeva, the privacy-focused search firm co-founded by former Google government Sridhar Ramaswamy. Benoit Dageville, Snowflake’s co-founder and president of merchandise, wrote in a weblog submit that the corporate intends to “infuse and leverage” Neeva’s AI-equipped search merchandise throughout its cloud companies. Terms of the deal weren’t disclosed.
“Neeva permits us to faucet into some of probably the most cutting-edge search applied sciences obtainable to convey search and dialog in Snowflake to a brand new stage,” Dageville wrote.
The acquisition comes days after Neeva, which was founded in 2019, stated it will shut down its shopper search engine to focus on growing use instances for AI and enormous language fashions.
The firm will maintain its quarterly name with traders Wednesday at 5 p.m. ET.
— CNBC’s Ashley Capoot contributed reporting to this text.