By Jon Swartz
Snowflake Inc.’s first earnings report since its blockbuster IPO illustrated the volatile nature of its stock: Shares were initially down 9% in after-hours trading Wednesday.
The cloud company /zigman2/quotes/220991541/composite SNOW -4.10% , fresh off a record initial public offering in September , reported a third-quarter net loss of $168.9 million, or $1.01 a share, compared with a net loss of $88.1 million, or $1.92 a share, in the year-ago quarter.
Revenue more than doubled to $159.6 million from $73 million a year ago.
“We are pleased with our performance this first quarter as a public company,” Snowflake Chief Executive Frank Slootman said in a statement announcing the results. “The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies. Our vision of the Snowflake Data Cloud mobilizing the world’s data is clearly resonating across our customer base.”
Analysts surveyed by FactSet had expected a loss of 26 cents a share on revenue of $147.7 million.
Snowflake shares rallied later in the day, and were down 4% at the outset of the company’s conference call with analysts. Early in the call, the company disclosed it has $5.1 billion in cash, and offered fourth-quarter product revenue guidance of $162 million to $167 million, an increase of 97% to 103%, year-over-year. Analysts polled by FactSet expect $166.1 million in Q4.
Cowen & Co. analyst J. Derrick Wood expected “a strong quarter out of the gate.” He maintained an outperform rating and price target of $295 in a note Wednesday.
Snowflake’s IPO, the largest on record for a software company, sold 28 million shares to raise $3.36 billion through its offering. The company’s current market value of $90 billion is more than seven times the private-market valuation of $12.4 billion that it fetched in February.
Through Wednesday’s close, Snowflake shares are up about 20% since its IPO nearly three months ago. The broader S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.72% has climbed 13.6% in 2020.