Snowflake shares plunge 30% on forecast for weaker growth

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The company logo for Snowflake Inc. is displayed on a banner to celebrate the company's IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid

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March 2 (Reuters) - Data analytics software maker Snowflake (SNOW.N) forecast a slowdown in product revenue growth for fiscal 2023 at a time when industry experts expect cloud spending to rise, dragging its shares about 30% in aftermarket trading on Wednesday.

Although a key player in its sector, Snowflake is facing stiff competition from large providers like Microsoft Corp's (MSFT.O) Azure and's Amazon Web Services.

Snowflake, whose customers include more than 200 of the Fortune 500 companies, expects product revenue for fiscal 2023 to grow between 65% and 67%, far lower than 2022's 106%.

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The metric is crucial for the company which recognizes revenue based on the usage of its software platform.

Snowflake also said it acquired Streamlit, a firm which helps developers create data apps from Python. The financial terms of the deal were not disclosed.

Shares of the cloud-based data analytics company have fallen more than 22% so far this year, in tandem with a rout in the technology sector that was triggered by concerns around interest rate hikes.

During the fourth quarter ended Jan. 31, the company posted total revenue of $383.8 million, beating analysts' average estimate of $372.6 million, according to IBES data from Refinitiv.

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Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath

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