Snowflake Inc shares fell 16% to $148.15 in early Thursday trading after the cloud software company announced first-quarter 2024 revenue that rose 48% year over year to $624 million, along with adjusted earnings per share of $0.15, surpassing the Refinitiv consensus estimate on both the top and bottom lines.
The company, though, issued weaker-than-expected 2Q and full-year guidance as growth for cloud computing partners such as Amazon.com slows.
Snowflake noted that it anticipates its 2Q product revenue, which makes up the bulk of the company’s sales, will be between $620 million and $625 million, less than the StreetAccount estimate of $649 million, while also expecting fiscal 2024 product revenue of $2.6 billion, which fell short of expectations as well.
The company added that it had a net revenue retention rate of 151% in the quarter, compared with 158% in fiscal 4Q.
Snowflake also revealed plans to acquire Neeva, the privacy-focused search company co-founded by former Google executive Sridhar Ramaswamy.
“Neeva allows us to tap into some of the most cutting-edge search technologies available to bring search and conversation in Snowflake to a new level,” Snowflake president of products Benoit Dageville wrote in a blog post.
Shares of Snowflake have gained nearly 12% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com