Shares of cloud data platform providers snowflake The company’s shares fell more than 12% in after-hours trading on Wednesday. gave weak guidance In its financial report, it said: get Search for startup Neeva and the amount is undisclosed.
The company’s efforts include:
- Earnings per share: 15 cents adjusted, 5 cents analyst estimate, according to Refinitiv
- Earnings: $624 million vs. analyst estimates of $608 million, according to Refinitiv
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The company’s revenue in the first quarter of fiscal 2024 increased 48% year-over-year, but the rate of increase was lower than the 85% increase in the previous fiscal quarter. Most of Snowflake’s sales came from product revenue, which grew 50% year over year. Product revenue includes use of Snowflake’s software for storing and querying data stored on the system.
Snowflake said it expects second-quarter product revenue to be between $620 million and $625 million. This would see him grow by 33% to 34% year-over-year. The forecast was well below StreetAccount’s forecast of $649 million for him.
Snowflake estimated product revenue for fiscal 2024 at $2.6 billion. StreetAccount consensus was $2.7 billion.
Snowflake had a net loss of $225.6 million, or 70 cents per share, compared with a loss of $165.8 million, or 53 cents per share, in the year-ago quarter.
Snowflake also announced plans to acquire privacy-focused search company Niva, co-founded by former Google executive Sridhar Ramaswami.
Snowflake co-founder and president of products Benoit Dageville said in a blog post that the company intends to “deploy and leverage” Neeva’s AI-powered search product across its cloud services. Terms of the deal were not disclosed.
“With Neeva, we will be able to take advantage of the most advanced search technology available to take search and conversation in Snowflake to new levels,” writes Dageville.
The acquisition comes just days after Neeva, founded in 2019, announced it would shut down its consumer search engine to focus on developing AI and large-scale language model use cases.
The company will hold a quarterly conference call with investors on Wednesday at 5:00 pm ET.
Description: An 85% year-over-year sales increase occurred in the first quarter of fiscal 2023. The period was incorrectly documented in previous versions.
— CNBC’s Ashley Capoot contributed a report for this article.
