The New York Stock Exchange welcomes Snowflake (NYSE:SNOW) on Tuesday. December 21, 2021 to usher in the first day of winter.
Cloud data platform provider actions Snowflake After the company fell more than 12% in extended trading on Wednesday. issued weak guidance in its earnings report and said that will get search startup Neeva for an undisclosed sum.
How the company fared:
- Profit per share: 15 cents, cleared, vs. 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 rose 48% year-over-year in the fiscal first quarter, but that growth was lower than the year-over-year increase of 85%. The majority of Snowflake’s sales come from product revenue, which grew 50% year over year. Product Revenue represents the use of Snowflake’s software to store and query data stored on its system.
Snowflake said it expects product revenue to be between $620 million and $625 million in the fiscal second quarter. This would represent year-on-year growth of between 33% and 34%. The projection was well below StreetAccount’s estimate of $649 million.
For fiscal 2024, Snowflake called for $2.6 billion in product revenue. The StreetAccount consensus was $2.7 billion.
Snowflake also announced plans to acquire Neeva, a privacy-focused search company co-founded by former Google executive Sridhar Ramaswamy. Benoit Dageville, co-founder and president of Snowflake Products, wrote in a blog post that the company intends to “incorporate and leverage” Neeva’s AI-powered search products in its cloud services. Terms of the deal were not disclosed.
“Neeva enables us to leverage some of the most advanced search technologies available to take search and conversation in Snowflake to a new level,” wrote Dageville.
The acquisition comes days after Neeva, which was founded in 2019he said he would turn off its consumer search engine will focus on developing use cases for AI and large language models.
The company will hold a quarterly call with investors on Wednesday at 5:00 PM ET.
— CNBC’s Ashley Capoot contributed reporting to this article.