Snowflake (SNOW) earnings Q3 2023

Shares of the cloud information platform supplier Snowflake fell greater than 13% in prolonged buying and selling on Wednesday after the corporate launched third-quarter outcomes that beat estimates however supplied mild product income steering.

This is how the corporate did:

• Earnings per share: 11 cents, adjusted, vs. 4 cents anticipated by analysts, in line with Refinitiv
• Income: $557 million vs. $539 million anticipated by analysts, in line with Refinitiv

The corporate’s income was up 67% 12 months over 12 months, however that development was decrease than the 83% improve final quarter. The biggest a part of income, product income, additionally grew 67% 12 months over 12 months to $523 million. Product income is a key metric for Snowflake because it acknowledges income primarily based on platform consumption.

Snowflake stated it anticipates product income will likely be between $535 million and $540 million in its fourth quarter, wanting the $553 million anticipated by analysts estimates in line with StreetAccount. The corporate expects to report between $1.919 billion and $1.924 billion for the complete 12 months.

Product gross revenue margins, working earnings margins and adjusted free money stream are anticipated to be 75%, 3% and 21% respectively for the complete 12 months.

Snowflake stated it had 7,292 clients within the quarter, which ended Oct. 31.

The corporate will maintain its quarterly name with traders Wednesday at 5 p.m. ET.