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Snowflake Falls as Investors Weigh Higher Expenses Against Improved Outlook

Published 05/27/2021, 10:09 PM
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By Dhirendra Tripathi

Investing – Snowflake Inc (NYSE:SNOW) shares fell more than nearly 6% Thursday as more than doubling of losses in the first quarter outweighed the company’s higher guidance for this year.

A surge in operating expenses, particularly trebling of research and development spending, drove the loss higher to $203.22 million in the 2022 fiscal first quarter ended April 30. The loss in the first quarter of fiscal 2021 was $93.64 million.

Revenue rose 110% year-on-year to $229 million on new customer acquisitions.  The company had 4,532 customers at the end of April compared to 2,720 at the end of same month last year.

The data-analytics software company managed to more than double the number of its $1 million-plus customers. Their number was 104, up from 48 last April.

For the full fiscal, Snowflake pegged its forecast for product revenue in the range of $1.02 billion, to $1.03 billion, which means an 86% growth at midpoint.

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