The New York Stock Exchange welcomed Snowflake (NYSE:SNO) on Tuesday. December 21, 2021, the first day of winter is about to come.
Cloud data platform provider shares snowflake Shares plunged more than 12% in extended trading Wednesday after the company issued weak guidance in its earnings report and said it would acquire search startup Neeva for an undisclosed amount.
Here’s how the company did:
- earnings per share: 15 cents, adjusted, versus 5 cents expected by analysts, according to Refinitiv.
- Income: $624 million versus the $608 million expected by analysts, according to Refinitiv
The company’s revenue grew 48% year over year in the fiscal first quarter, but that growth was less than the 85% increase year over year. The bulk of Snowflake’s sales come from product revenue, which grew 50% year over year. Product revenue accounts for storing and running queries on data stored in Snowflake’s systems.
Snowflake said it anticipates product revenue for the fiscal second quarter will be between $620 million and $625 million. This would represent year-over-year growth of between 33% and 34%. The launch came in well below StreetAccount estimates of $649 million.
For the 2024 fiscal year, Snowflake calls for product revenue of $2.6 billion. The StreetAccount consensus was $2.7 billion.
Snowflake also announced that it plans to acquire Niva, the privacy-focused search company co-founded by former Google executive Sridhar Ramaswamy. Snowflake co-founder and president of products Benoît Degeville wrote in a blog post that the company intends to “infuse and leverage” Niva’s AI-equipped search products into its cloud services. Terms of the deal were not disclosed.
“Niva allows us to tap into some of the most cutting-edge search technologies available to bring discovery and interaction to a whole new level at Snowflake,” wrote Daysville.
The acquisition comes days after Neeva, which was founded in 2019, said it would be spinning off its consumer search engine to focus on developing use cases for AI and larger language models.
The company will hold its quarterly call with investors on Wednesday at 5PM ET.
— CNBC’s Ashley Capoot contributed reporting to this article.