Snowflake Drops on Forecast for Slowing Product Sales Growth
- Cloud software company went public in 2020’s biggest U.S. IPO
- Quarterly product revenue projected to jump as much as 92%
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Snowflake Inc., a software company that debuted with 2020’s biggest U.S. public offering, said product sales will grow more slowly in the current quarter than in the most-recent period. The shares fell about 4% in extended trading.
Product sales, which make up more than 90% of Snowflake’s revenue, will be $235 million to $240 million in the period ending in July, the San Mateo, California-based company said Wednesday in a statement. That would be a growth rate of as much as 92% over the period a year earlier, the company said, compared with a pace of 110% in the fiscal first quarter, which ended April 30. Analysts, on average, estimated $233 million, according to data compiled by Bloomberg.