Snowflake shares tumbled more than 12% despite the data cloud analyst firm reporting better-than-expected results for the second quarter and raising its full-year product revenue forecast.
For Q2, Snowflake posted product revenue of $829.3 million, up 30% year-over-year and ahead of estimates of $808.4 million
Adjusted earnings per share (EPS) were $0.18, beating estimates of $0.16.
The company now expects product revenue of $3.36 billion for the full year, up from its earlier forecast of $3.3 billion.
"Snowflake delivered another strong quarter, surpassing the high end of our Q2 product revenue guidance and, as a result, we're raising our product revenue guidance for the year," Snowflake CEO Sridhar Ramaswamy commented.
However, weighing on shares was the fact the firm did not raise its margin forecast along with its increased revenue projection.
It continues to expect margins of 75% for product gross profit, 3% for operating income, and 26% for adjusted free cash flow.
Management said on a post-earnings call that it left its margin forecast unchanged as it awaits the deployments of certain GPUs.
Shares of Snowflake traded down 12.3% at $118 on Thursday morning.