Snowflake shares sink despite Q1 beat, higher year view

Snowflake said its more-than-tripling of RPO was a measure of sales strength “across the board.”

Snowflake, the cloud data analytics company that came public in September, this afternoon reported fiscal Q1 revenue ahead of analysts' expectations, and raised its outlook for this year's product sales. 

The report sent Snowflake shares down 6% in late trading. 

CEO and Frank Slootman called the results "strong," noting that product revenue of $214 million "reflected strength in customer consumption."

Revenue in the three months ended in April rose 110%, year over year, to $228.9 million, yielding a net loss of 70 cents a share.

Analysts had been modeling $214 million and a 51-cent per share net loss.

Snowflake's remaining performance obligation, or RPO, a measure of backlog, rose 206%, year over year, to $1.4 billion, it said.

Added Slootman, "Remaining performance obligations showed a robust increase year-on-year, indicating strength in sales across the board."

For the current quarter, the company sees product revenue of $235 million to $240 million. That compares to consensus for $235 million.

For the full year, the company raised its outlook for product revenue to $1.02 billion to $1.035 billion, from a previously offered range of $1 billion to $1.02 billion. 

That compares to consensus of $1.019 billion.

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