The New York Stock Exchange (NYSE:SNOW) welcomes Tuesday. December 21, 2021, to begin the first days of winter.
NYSE
Shares of a cloud data platform provider snowflake It fell more than 12% in extended trading on Wednesday after the company issued weak guidance in its earnings report and said it would acquire search startup Neeva for an undisclosed amount.
Here’s how the company did:
- Earnings per share: 15 cents adjusted versus the 5 cents expected by analysts, according to Refinitiv
- he won: $624 million versus the $608 million that analysts had expected, according to Refinitiv
The company’s revenue grew 48% year-over-year in the fiscal first quarter, but that growth fell short of the 85% year-over-year increase. The bulk of Snowflake’s sales come from product revenue, which expanded 50% year-over-year. Producer revenue accounts for using Snowflake software to store and run queries on data stored in its system.
Snowflake said it expects product revenue to be between $620 million and $625 million in the fiscal second quarter. That represents annual growth of between 33% and 34%, and the forecast came in well below StreetAccount’s estimate of $649 million.
For fiscal year 2024, Snowflake called for product revenue of $2.6 billion. StreetAccount consensus is $2.7 billion.
Snowflake also announced that it plans to acquire Neeva, the privacy-focused search company co-founded by former Google CEO Sridhar Ramaswamy. Benoit Dageville, co-founder and chief product officer of Snowflake, wrote in a blog post that the company intends to “pump and monetize” Neeva’s AI-equipped search products across its cloud services. The terms of the deal were not disclosed.
“Neeva allows us to leverage some of the most advanced search technologies available to bring Snowflake search and conversation to a new level,” Dagville wrote.
The acquisition comes days after Neeva, which was founded in 2019, said it was shutting down its consumer search engine to focus on developing use cases for artificial intelligence and large language models.
The company will hold its quarterly investor call on Wednesday at 5 p.m. ET.
— CNBC’s Ashley Cabot contributed reporting to this article.
