Snowflake (SNOW) Q1 2024 revenue

Cloud Data Platform Provider Actions Snowflake slid more than 12% in extended trading on Wednesday after the company released weak guidance in its earnings report and announced it would acquire research startup Neeva for an undisclosed amount.

Here’s how the company did it:

• Earnings per share: 15 cents, adjusted, vs. 5 cents expected by analysts, according to Refinitiv
• Income: $624 million vs. $608 million expected by analysts, according to Refinitiv

The company’s revenue increased 48% year over year in the first quarter of the current fiscal year, but this growth was lower than the 85% increase recorded in the quarter of the previous year. The bulk of Snowflake’s sales come from product revenue, which grew 50% year-over-year. Product revenue represents the use of Snowflake’s software for storing and performing queries on data stored in its system.

Snowflake said it expects product revenue to be between $620 million and $625 million in the second fiscal quarter. This would represent year-over-year growth of between 33% and 34%. The projection is well below StreetAccount’s estimate of $649 million.

For fiscal year 2024, Snowflake called for revenue of $2.6 billion. The StreetAccount consensus was $2.7 billion.

Snowflake posted a net loss of $225.6 million, or a loss of 70 cents per share, compared to a loss of $165.8 million, or a loss of 53 cents per share, in the first quarter of the year last.

Snowflake also announced plans to acquire Neeva, the privacy-focused research company co-founded by former Google executive Sridhar Ramaswamy. Benoit Dageville, co-founder and president of products at Snowflake, wrote in a blog post that the company intends to “infuse and leverage” Neeva’s AI-powered search products into its cloud services. . The terms of the contract are not disclosed.

“Neeva allows us to leverage some of the most advanced search technologies available to take search and conversation in Snowflake to a new level,” Dageville wrote.

The acquisition comes days after Neeva, which was founded in 2019, announced it would shut down its consumer search engine to focus on developing use cases for AI and large language models. .

The company will hold its quarterly call with investors on Wednesday at 5 p.m. ET.

– CNBC’s Ashley Capoot contributed reporting for this article.