Snowflakes Slips on Wider 3Q Loss

By Yasin Ebrahim

Snowflake slumped after-hours Wednesday as the cloud company reported wider-than-expected third-quarter losses on a jump in costs.       

Snowflake (NYSE:SNOW) fell more than 6% following the report.

The company reported Q3 losses of $1.01 a share, from a loss of $1.92 in the prior-year period, compared with Wall Street estimates for a loss of 26 cents a share. Revenue  rose 115% to $148.5 million, beating estimates of $148.7 million

“The company now has 3,554 total customers and 65 customers with trailing 12-month product revenue greater than $1 million,” Snowflake said. “The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies.”

Looking ahead to 2021, the company guided revenue of $162 million to $167 million, implying 97% to 103% growth year-on-year respectively.