Shares of Snowflake (NYSE:SNOW) plunged on Thursday after the company reported earnings on Wednesday that showed the slowest revenue growth since at least 2019.
Fourth-quarter sales grew 101% year over year to $383.8 million, which was a slowdown from the previous quarter, when revenue growth reached 110%, according to the Wednesday report. Still, it beat analysts’ revenue expectations of $372.6 million.
Snowflake guided for product revenue growth between 79% to 81% in the fiscal first quarter, slightly above consensus estimates of 78% product revenue growth. In the fiscal fourth quarter, product revenue increased by 102%.
However, Citi defended the company, noting the issues seem to be "transitory." Analyst Tyler Radke, who has a buy rating, lowered the price target to $310, down from $470, noting that the company, which generates revenue via a consumption model, saw strong bookings, but lower usage near the holidays.
SNOW shares plunged $38.32, or 14.5%, to $226.37.
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