Snowflake beats Q1, appoints Steve Burke to its Board, shares plunge 12% on weak guidance

Snowflake Inc (NYSE:) shares dropped more than 12% after-hours today following the company’s reported Q1/24 earnings. While Q1 results came in better than expected, the company’s outlook disappointed investors.

Q1 EPS came in at $0.15, better than the consensus estimate of $0.06. 48% year-over-year to $623.6 million, beating the consensus estimate of $611.13M.

Product revenue was $590.1M, representing a 50% year-over-year growth. The company now has 373 customers with trailing 12-month product revenue greater than $1M and 590 Forbes Global 2000 customers. The remaining performance obligations increased 31% year-over-year to $3.4 billion.

The company expects Q2/24 product revenue in the range of $620 – $625M, representing a 33%-34% growth. For the full year, the company expects product revenue of $2.6B, representing a 34% year-over-year growth.

Furthermore, the company announced Steve Burke’s appointment to its Board of Directors, effective immediately. Following the company’s annual meeting on July 5, John McMahon will step down from the Snowflake board after 10 years of service.